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Tesla Q2 2022 Investment Note
Tesla exceed the market's EPS expectation although took supply hit in Q2
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Key Takeaways:
Attitude: Tesla continued to make significant progress across the business during the Q2 2022. Though there are certain challenges, including shutdowns and limited production in Shanghai. But in spite of challenges, it was one of the strongest quarters in Tesla's history. In June, Tesla achieved production records in both Fremont and Shanghai. The Energy business made meaningful progress, achieving higher volumes with stronger unit economics.
Guidance: Over a multi-year horizon, Tesla expects to achieve 50% average annual growth in the vehicle deliveries. While continue to execute on innovations, Tesla expects its hardware-related profits to be accompanied with an acceleration of software-related profits. As one of the core components of EV, Tesla expects to ramp 4680 production to exceed 1k per week by the end of 2022. Tesla continues to see recognized global pricing to increase as backlog flows through. Besides, macroeconomic related cost increases will also continue to be part of the 2H 2022. Tesla has the confidence for a record-breaking on the 2H 2022.
Product: In Texas, Tesla has installed the 2nd generation of manufacturing equipment for 4680 cells. Currently, there is no dependent on 4680 and Tesla has enough 2170 cells to satisfy all vehicle production for 2022. Battery 4680 will be important in 2023. Regarding Autopilot, Tesla now deployed the FSD Beta with City Streets driving capability to over 100,000 owners. Tesla's autonomous mileage is growing exponentially to over 35 million miles with FSD Beta. Tesla is making progress on the Cybertruck industrialization, which is currently planned for Austin production subsequent to Model Y ramp. Tesla expects to be in production with the Cybertruck in the middle of 2023.
Safety: Tesla plans to introduce a new feature that tension seat belts if the vision system detects imminent collision. The vehicles can actually see that a collision is about to occur with high probability before it happens. Another fundamental safety upgrade is that Tesla now can even adjust the airbag deployment on emergency thanks to the imbedded visual system. The update will be delivered to all cars which have at least AP3 hardware.
Q: How do you think about the bitcoin as an asset over the longer-term for Tesla and will you change your view on asset diversified into bitcoin on inflation?
Elon Musk: Tesla’s goal is to accelerate the advent of sustainable energy. Cryptocurrency is a sideshow to it. So, cryptocurrency is not something we think about a lot. We think a lot about scaling production and accelerating the advent of sustainable energy, which the record heat waves around earth, so to emphasize the urgency of that transition. So we are trying to make electric vehicles, solar deployments and stationary storage battery packs. But the three pillars of a sustainable energy future, which is like solar and wind for energy generation, stationary battery packs for storage and then electric vehicles. We are neither here nor there on cryptocurrency.
Q: How can Tesla make sure the company is staying ahead of Chinese EV manufacturers, both within and without China?
Elon Musk: Currently, the best Chinese EV manufacturer I believe is Tesla. We are actually doing the best, thanks to our incredible team in China. But I have a lot of respect for the Chinese, our manufacturers and other EV manufacturers in particular. I think they will be a force to be reckoned with worldwide. They are smart and hardworking and I think any company that’s not as competitive as them will obviously suffer market share decline. So obviously, we have a lot of respect for the current companies in China and then their capabilities.
Q: Can you elaborate on what you mean by inflation cooling down and how aggressively the company will lower prices?
Elon Musk: Because there is a quite a long wait when somebody orders in a car now, like 6 months even a year. We have to anticipate what the probable inflation rate is over that period of time. When we see indications of inflation rate is declining, then we would not need to increase our car prices. It’s possible that there could be a slight decrease in car prices, but this is fundamentally dependent on macroeconomic inflation. If I were to guess, I think inflation will decline towards the end of this year. We are certainly seeing prices of commodities trending lower.
Q: How is the 4680 ramp going and is Giga Texas producing cells yet?
Drew Baglino: We are leveraging supplier cells, which we have in sufficient quantity to ramp Texas and Berlin. We expect to ramp total 4680 production to exceed 1,000 per week by the end of 2022. In Q2, at Kato, we fully automated indiscernible for the drying of electrode tool there, unlocking major increases in production and improvements in yields. Because of that, Kato output has grown about 35% MoM since March, and yields throughout the factory are already at targets in most areas and trending in that direction. We did feed learnings from Fremont cell and pack lines to Texas and Berlin there, a carbon copy. Cell design was revved to unlock higher performance and manufacturing simplicity. Our target for Texas is to begin production this quarter and aim for Texas to be capable of exceeding Kato weekly output before the end of 2022.
Drew Baglino: We are leveraging supplier cells, which we have in sufficient quantity to ramp Texas and Berlin. We expect to ramp total 4680 production to exceed 1,000 per week by the end of 2022. In Q2, at Kato, we fully automated indiscernible for the drying of electrode tool there, unlocking major increases in production and improvements in yields. Because of that, Kato output has grown about 35% MoM since March, and yields throughout the factory are already at targets in most areas and trending in that direction. We did feed learnings from Fremont cell and pack lines to Texas and Berlin there, a carbon copy. Cell design was revved to unlock higher performance and manufacturing simplicity. Our target for Texas is to begin production this quarter and aim for Texas to be capable of exceeding Kato weekly output before the end of 2022.
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This article is a script from the TSLA Q2 2022 Earnings call. In order to facilitate reading, we have made appropriate cuts and revisions.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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SpyderCall : Tesla has been trending down with the rest of the market since last November. Inflation and the conflict in Ukraine was destroying equities during this time. The conflict in Ukraine is not getting worse, and inflation is easy as Mr. Musk says himself. So I think we are due for some green weekly candles possibly in the near future. Until we get more negative macroeconomic catalysts I think we are overdue for some relief and we should see some more green candles in the short term time frame. Just look how Tesla's share price broke out of this range to the upside. This is a textbook breakout. Things are definitely looking more bullish after Tesla's earnings release.
Bleezie SpyderCall : when do you see Tesla hitting $900 and $1000
SpyderCall Bleezie : I couldn't tell you for sure. after last week's earnings report, the market reaction was quite good. it looks like he wants to get to that $900 price point quickly. but right now in the current market conditions any bad news will send I stock tumbling down. just look how snapchat's earnings went down the other day. they basically brought down all the big tech companies and the rest of the market
Ab Woods : To the moon
ZnWC : I would hold and wait for the share price to go to the moon
The company earnings is within expectation and cashflow is healthy. In addition, there may be a stock spilt in near future. Despite all uncertainty and challenges, the company will rise above its competitors significantly ![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Deep Value : Here are some nice photos for Tesla!
Mnbvc22 : I think there is a tremendous amount of leadership in this company! so I think future will be bright no matter wat!
MONO k Samuel0248 : please can you help me
Milk The Cow : For the long-term investing, I think that $Tesla (TSLA.US)$ is to the moon
= bullish ![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
However, in the short-term or mid-term, whatever u called it, there may be some fluctuations in the stock price =high & low, I'm actually kinda bearish on it overall ![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
. (That's why I'm timing the market= DO NOT FOLLOW $Tesla (TSLA.US)$)![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
... Well, who knows... ![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
$Tesla (TSLA.US)$
Milk The Cow Milk The Cow : Forgotten mentioned why I'm long-term bullish on $Tesla (TSLA.US)$ is because they got "good management" & other reasons. However, Elon daring of trying new things scare me a bit as it's a new area being explored into...![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
(entrepreneur).
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