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Tesla (TSLA) reported an automotive gross margin of 27.9% in Q3 2022

While this is over Tesla's target of 20 percent, it's still down year-over-year against Q3 2021's 30.5 percent gross margin.

TJ Denzer

October 19, 2022 2:11 PM

Image via Tesla

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One of the more notable factors in earnings results for a lot of companies closing out their quarters is gross margin. As the global economy continues to remain tumultuous, margins are indicative of how much companies are spending versus how much they are making, especially with inflation being a major factor in the current economy woes. Tesla’s Q3 2022 just dropped and its margins seem to be in a solid state, despite being down year-over-year from Q3 2021.

Tesla released its Q3 2022 earnings results on its investor relations website on October 19, 2022. The latest earnings results were illuminating regarding Tesla’s ongoing business through tough and uncertain times. Despite ongoing supply and delivery issues affecting its electric vehicles and battery manufacturing, Tesla still ramped up production and delivered a record number of cars on the quarter. For this, its gross margin came out to 27.9 percent on the quarter. This was down from Q3 2021’s 30.5 percent gross margin. However, it was pretty much equal over Q2 2022, which also had a 27.9 percent margin.

Tesla narrowly missed on revenue for Q3 2022, but came out ahead of expectation on earnings-per-share (EPS). It also came away with $21.1 billion USD cash on hand for the quarter, socking away an additional $2.2 billion throughout the quarter after expenses and offsets. The company’s margins may have stayed even from Q2 to Q3 2022, but it’s still above target for the company. Tesla has aimed to keep the margin above 20 percent and is doing so handily.

Even so, the company also saw headwinds that impacted its Q3 2022 results by around $250 million. Tesla still looks fairly strong for the end of its fiscal year, but stay tuned as we continue to report on further Tesla updates and other tech company earnings results throughout the coming weeks.

TJ Denzer

Senior News Editor

TJ Denzer is a player and writer with a passion for games that has dominated a lifetime. He found his way to the Shacknews roster in late 2019 and has worked his way to Senior News Editor since. Between news coverage, he also aides notably in livestream projects like the indie game-focused Indie-licious, the Shacknews Stimulus Games, and the Shacknews Dump. You can reach him at tj.denzer@shacknews.com and also find him on Twitter @JohnnyChugs.