Tesla, Inc. has reported record-breaking financial results for the fourth quarter and full year of 2022. The company achieved the highest-ever quarterly revenue, operating income, and net income in its history in Q4-2022. In 2022, total revenue grew 51% YoY to $81.5 billion and net income (GAAP) more than doubled YoY to $12.6 billion. The company also reported an operating margin of 16.8% in 2022 and 16.0% in Q4.
In terms of profitability, Tesla reported a GAAP operating income of $13.7 billion in 2022 and $3.9 billion in Q4. The company also reported GAAP net income of $12.6 billion in 2022 and $3.7 billion in Q4. Additionally, Tesla reported non-GAAP net income of $14.1 billion in 2022 and $4.1 billion in Q4.
Cash flow was also strong for the company, with operating cash flow of $14.7 billion and free cash flow of $7.6 billion in 2022. In Q4, Tesla reported operating cash flow of $3.3 billion and free cash flow of $1.4 billion. Additionally, the company saw an increase of $1.1 billion in its cash and investments in Q4, bringing the total to $22.2 billion.
On the operations side, Tesla reported that it deployed 6.5 GWh of energy storage in 2022, a 64% YoY increase. The company also set a new record for vehicle deliveries, with 1.31 million in 2022.
As Tesla looks ahead to 2023, the company acknowledges the uncertainty of the macroeconomic environment, particularly with rising interest rates. However, the company is confident in its ability to handle challenges and is focusing on accelerating its cost reduction roadmap and driving towards higher production rates. Tesla also highlighted that its average selling price (ASP) has generally been on a downward trajectory for many years, but that it is necessary to improve affordability in order to become a multi-million vehicle producer. Despite the decrease in ASP, the company has consistently improved its operating margin from approximately negative 14% to positive 17% between 2017 and 2022 through the introduction of lower cost models, buildout of localized, more-efficient factories, and vehicle cost reduction efforts.
The strong financial performance has been reflected in the market, with shares of Tesla trading 5.48% higher after hours.
