Tesla released their earnings after market close yesterday. Revenue, profits, deliveries and outlook all caught the headlines. After hours saw the price fly in both directions. A closing price of 937.41 dropped to 880 before reaching an after-hours high of 975. The price is currently around 930, only down 0.9%.

Financials

2021 revenue reached $53.8B, 71% increase YoY. This is the biggest increase since the 2017-2018 growth. Total gross profit was $13.6B, a rise of 105% from the previous year. EBITDA was $11.6B, up 100%. Quarter-end cash and cash equivalents increased sequentially by $1.5B to $17.6B in Q4, driven mainly by free cash flow of $2.8B, partially offset by net debt and finance lease repayments of $1.5B.

These latest results mark a milestone for Tesla as their cumulative losses since starting the company have now flipped to a positive profitability (retained earnings). Elon Musk, CEO and product architect of Tesla, said “it makes us a real company at this point.”

Deliveries and production

Tesla had a superb Q4 in relation to their deliveries and production. Model S and X productions were 19% lower in Q4 2021 compared to Q4 2020. However, their newer models, the 3 and Y, made a 79% increase from the correlating quarter.

Yearly figures show the production numbers for all vehicles up 83% from 2020, with a total of 930,422 vehicles made. Deliveries rose 87%. 2020 figures were just below the half million mark whilst 2021 delivered 936,222 cars.

Teslas market share has increased significantly over the last two years.

Source: Tesla estimates based on ACEA

Outlook

All is well and good that Tesla exceeded expectations for 2021. The global semi-conductor shortage didn’t stand in the way of their growth. But in a market that has seen the S&P500 give out the worst start to the year in its history, how will Teslas outlook for 2022 weigh in?

In regards to their volume, Musk said “We plan to grow our manufacturing capacity as quickly as possible. Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries. The rate of growth will depend on our equipment capacity, operational efficiency and the capacity and stability of the supply chain (semi-conductors). Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through 2022.”

Musk also noted that they have sufficient cash to fund their product roadmap and long term expansion plans. Tesla also believe software profits will eventually accompany their hardware-related profits in the years to come.

Tesla optimism for 2022?

Tesla aiming for 50% growth despite supply chains issues is commendable. Wether they can stay on track with that target is yet to be known. If we were to see a positive update to the global supply chain issues, Tesla would surely rocket up. 50% growth would likely become a minimum target for the company.

As for the share price, things will be more shaky. There is a strong weekly support and demand zone at around 850. But the main focus would have to be growth stocks in general coming back into favour. Tesla still has a P/E ratio of 182.2 which could see a correction compared to the automakers industry average of 17.7.

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