Tesla Inc. Earnings Report (Q4 2021)

Tesla beats its expectations for the Q4 2021 earnings report, with a solid revenue figure and future outlook.
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3 min read
Tesla

Tesla’s earnings report for the fourth quarter of 2021 are in and the automotive giant has once again met expectations across the board, while providing some future product updates for 2022 and beyond.

Revenues generated through its automotive division came in at $15.9 billion, with total revenue for the company at $17.7 billion, which was higher than analyst’s estimates of $16.5 billion. The total revenue figure represents a 65% increase year on year. Tesla says that this revenue is reflective of the increase automotive sales and production rates in the business and growth in other areas such as solar energy. Only $314 million of revenue generated was from regulatory credits – a 22% decrease year on year.

Operating expenses increased from $1.65 billion to $2.23 billion, a growth of 50% year on year, while EBITDA was $4.09 billion, an increase of 121% year on year.

Earnings per share attributable to common stockholders came in at $2.52 per share, vs the $2.36 per share expected by analysts.

Revenue generated through energy management and storage had fallen 8%, as Tesla stated that demand for this sector has been above capacity. However, the company said that they plan to build a dedicated Megapack factory to cope with this demand in the future.

In the report, Tesla also said that the operating income figures were primarily impacted because of:

  • Further per vehicle cost reduction
  • Growth in vehicle deliveries
  • Improved profitability of automotive leasing and Service & Other Business
  • Rising raw material, commodity, logistics and expedite costs

Tesla also reflected upon its 2021 within the US, China, and Europe. In the US, the company is preparing to deliver Model Y vehicles to customers from its new Gigafactory in Texas and they believe that production from its Fremont factory can reach 600,000 per year. In China, Tesla noted that Gigafactory Shanghai has allowed the company to significantly increase its vehicle production in Asia, citing the benefits of local production such as lower costs. In Europe, the company highlighted they are waiting for the manufacturing permit to be approved by authorities.

Further, the company notes their testing of the upcoming Full Self Driving (FSD) software update, which the beta is now in 60,000 Tesla vehicles driven by consumers.

Tesla also say that they are making progress on the industrialisation of their upcoming product, the Cybertruck.

CEO Elon Musk said that the next earnings call will have an updated product roadmap and that the company is still feeling the impact of chip shortages and limitations. No new products will be released in 2022, he added.

Shares of Tesla Inc. fell 5% in extended trading on Wednesday following the financial report.

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