Tesla’s Revenue Growth in China Slowed Down Sharply in 2022

According to a 10-K document submitted by Tesla to the US Securities and Exchange Commission on January 31, the firm’s total revenue in 2022 was $81.462 billion, up 51% year-on-year. Specifically, the Chinese market notched revenue totaling $18.145 billion, accounting for 22.27%, while the US market saw revenue of $40.553 billion, accounting for 49.78%, making it still Tesla’s largest market.

The proportion of Chinese market revenue to Tesla’s total has declined. In 2021, the number was about 26%, and in 2020 it was 21%.

In terms of growth rate, the Chinese market also lags behind others. The US not only accounts for Tesla’s highest proportion of revenue, but it also has the largest year-on-year increase. Its revenue in 2022 increased by 69.09% compared with $23.973 billion in 2021. Revenue from other markets in 2022 increased by 42.22% compared with 16.006 billion yuan in 2021. China’s market revenue increased by 31.07% compared with $13.844 billion in 2021.

However, before that, the growth rate of the Chinese market exceeded 100% for two consecutive years. In 2020, the revenue of the Chinese market was $6.662 billion, and in 2019 it was $2.979 billion.

Tesla produced a total of 1,369,611 vehicles and delivered 1,313,851 vehicles in 2022. Its net profit attributable to ordinary shareholders last year was $12.56 billion, and the capital expenditure was $7.16 billion. Tesla said that it currently expects capital expenditure to be between $6 billion and $8 billion in 2023 and between $7 billion and $9 billion in each of the next two fiscal years.

Tesla plans to invest another $3.6 billion to expand its super factory in Nevada. In addition to expanding the factory for mass production of semi electric heavy trucks, the firm will also build a new factory for 4680 battery production, with annual production capacity aimed at supporting 1.5 million light vehicles.

Tesla has recently slashed the price of some models in China amid economic turbulence, trying to use its strong profit margins and production scale to fight a price war and resist increasingly fierce competition. Company founder and CEO Elon Musk said during Tesla’s fourth-quarter earnings meeting that the company’s order volume reached its highest level in January 2023, almost double the factory’s output.

SEE ALSO: Tesla China Denies 54% Drop in Production Costs for 4680 Batteries

It was recently reported that Tesla’s brand-new Model Q will be officially launched in 2023 and will be equipped with BYD’s blade battery. Different from Tesla’s Model 3 and Model Y, the price of Model Q will be reduced to $24,990, and its main competitors include BYD and XPeng in China. However, Tesla China denied this report.