Year in review: Tracing Tesla's highs and lows in 2022
When we hear about Tesla these days, what comes to our mind is falling stock prices and a CEO running amok. That is, however, an oversimplified way of looking at an otherwise complicated year for the world's most valuable automaker. Here, we take a look at the crests, troughs, and in-betweens of Tesla's 2022.
Tesla under-performed in the second quarter due to supply-chain constraints
Tesla's 2022 began with a bang. In the first quarter, the company blew away Wall Street predictions by earning $18.7 billion in revenue and $3.3 billion in profit. The second quarter, however, told a different story. Supply chain issues brought the company's revenue down to $16.9 billion, while the profit was down $2.3 billion.
Company set record revenue in Q3 but missed estimates
In the most recent quarter which ended in October, Tesla's revenue rose to a record-setting $21.45 billion but still missed analysts' expectations. The company's profits nearly doubled from the same quarter last year to $3.3 billion. However, it was below estimates, again, as the increase in the price of raw materials, the strengthening dollar, and issues at production facilities squeezed the company.
Supply chain issues affected the company's production
An issue that followed Tesla for more than half of 2022 was supply chain constraints. At first, it was the global chip shortage that affected the company's production lines. This was followed by the COVID-19 lockdown in China that affected the firm's gigafactory in Shanghai. Tesla's factories in Austin and Germany lost billions of dollars due to production snafus and EV battery shortages.
Tesla is expected to set a delivery record in Q4
One might think that the supply chain issues may have affected Tesla's delivery numbers. However, in the first three quarters of 2022, the company delivered 908,580 cars, only slightly less than 936,950 in the whole of 2021. Analysts expect Tesla to set a delivery record in Q4 with about 425,000 units delivered, which will beat the record set in Q3 of 2022.
Model Y broke 1969 record set by Beetle in Norway
2022 was a big year for Tesla cars as they set several records all around the world. Per the American-Made Index, Tesla Model Y and Model 3 became the most popular American-made cars (contributed the most to the US economy). The Model Y broke a 1969 record set by Volkswagen Beetle in Norway by becoming the most registered car in a single year.
Tesla delivered the first electric Semi truck to PepsiCo
Tesla didn't make anything new in 2022. The company decided to not do so owing to supply chain issues and fear of a decrease in production and delivery. However, the company delivered its first electric Semi truck five years after Elon Musk revealed it. The first Tesla Semi was handed over to PepsiCo at an event at the company's gigafactory in Sparks, Nevada.
Musk sold Tesla shares worth nearly $40 billion
From our recap of Tesla's 2022 so far, it seems that the company had a great year. However, it was marred by CEO Musk selling the firm's shares. Over the past year, Musk sold Tesla shares worth roughly $40 billion. This brought his shareholding in the company down to 13.4%. Musk has promised to not sell any more shares for at least two years.
Tesla's shares are down by over 65% this year
Tesla's great numbers haven't been able to hold its falling stocks. The company's shares have tumbled 37% in December alone, bringing the decline in prices this year to over 65%. Over 99% of the companies in the S&P 500 Index have outperformed the company. Its current market capitalization is $384.67 billion, down from $1.06 trillion at the beginning of this year.
The competition in EV space is heating up
Tesla continues to be the big dog in the EV segment. However, its competitors are more empowered now. Legacy automakers such as Kia, Hyundai, Volkswagen, and Mercedes-Benz, among others are focused on challenging Tesla's throne. Tesla's lack of new products in the imminent pipeline has given the rivals hope in capturing the company's customer base. Tesla is no longer the only EV option.
What does 2023 hold for Tesla?
For Tesla, 2023 will be a big year. For the first time, it is facing real competition in the EV space from legacy companies. Some have been predicting its death since its inception, but the company has managed to evade that. Next year, Tesla will need a fully-focused Musk at the helm. A Musk not distracted by Twitter, of course.