Tesla Inc. has reported a record fourth-quarter and full-year profitability on Wednesday, despite a global scarcity of computer chips slowing the whole auto sector.
Last year, the Austin, Texas-based firm earned $5.5 billion, compared to a previous high of $3.47 billion in net profits in 2020. It was the company’s third consecutive profitable year as an electric vehicle and solar panel manufacturer.
Tesla stated in a letter to shareholders that 2021 will be a watershed moment for the company. The letter stated, “There should no longer be any debate about the practicality and profitability of electric automobiles.”
In the fourth quarter, Tesla made $2.32 billion. The company earned $2.54 per share after deducting exceptional items like stock-based compensation. This was higher than Wall Street’s forecast of $2.36 per share. According to FactSet, revenue for the quarter was $17.72 billion, which was also higher than analysts’ expectations of $17.13 billion.
Selling regulatory credits to other automakers to meet government pollution regulations accounted for $314 million of the total revenue. For several quarters, that number has been a lower percentage of revenue.
Last year, Tesla delivered a total of 936,000 vehicles, roughly doubling the projection for 2020. Vehicle sales in the fourth quarter totaled 308,600, a new high. Tesla predicts a 50 percent yearly increase in vehicle deliveries “over a multi-year period,”.
The business stated that its plants have been operating below capacity for several quarters, owing to supply-chain difficulties that are expected to persist this year.
It also stated that CEO Elon Musk received $245 million in the fourth quarter as part of his compensation package for meeting certain operational targets.
Tesla said that its new factory near Austin began producing Model Y SUVs late last year. It intends to begin distributing them to clients after final certification. The company said that it is testing equipment at its new location in Germany and is still working with local officials to obtain a production authorization. The Cybertruck electric pickup is still listed as “under development.” Last year, it was expected to go on sale.
In a note to investors, Wedbush analyst Daniel Ives stated, “Officially cutting the red ribbon on Austin and Berlin over the coming months will be critical as additional production comes online for Tesla with demand now outstripping supply.”
In the fourth quarter, Tesla made $2.32 billion. The company earned $2.54 per share after deducting exceptional items like stock-based compensation. This was higher than Wall Street’s forecast of $2.36 per share. According to FactSet, revenue for the quarter was $17.72 billion, which was also higher than analysts’ expectations of $17.13 billion.
Selling regulatory credits to other automakers to meet government pollution regulations accounted for $314 million of the total revenue. For several quarters, that number has been a lower percentage of revenue.
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