Employees work at the Tesla Gigafactory in Shanghai, eastern China, on November 20, 2020. The American electric vehicle company Tesla built in 2019 its first Gigafactory outside the United States in the new area of Lingang, with a designed annual production capacity of 500,000 units.
Ding Ting | Xinhua News Agency | Getty Images
Tesla reported earnings after the bell and is a profit error, but another profitable quarter for Elon Musk’s electric and solar vehicle business.
Shares initially fell more than 6% after hours and quickly began to rebound.
Here are the results, compared to what analysts expected according to estimates compiled by Refinitiv:
- Earnings: 80 cents adj. vs. $ 1.03 per planned share
- Income: $ 10.74 billion versus projected $ 10.4 billion
Tesla’s gross margins reached 19.2% in the fourth quarter of 2020, the lowest since the last quarter of 2019. Capital expenditures reached $ 1.155 billion for the period ended December 31, 2020.
The company also reported a positive free cash flow for the year of $ 2.79 billion, more than double the previous year’s figure of $ 1.08 trillion.
Tesla previously said it had delivered 499,550 vehicles by 2020, barely eschewing its focus on half a million vehicles delivered by 2020. (Deliveries are the closest approximation to sales figures released by Tesla.) It produced 509,737 vehicles during the year.
Both deliveries and production numbers set a new record for the maturation of Elon Musk’s electric car company, seen as a triumph in a year in which car sales and factory operations were seen cushioned by a global pandemic.
The last quarter was its fifth consecutive quarter of profitability, which led to the company’s incorporation into the S&P 500.
Tesla is currently building new factories in Austin, Texas and Brandenburg, Germany, after quickly building and achieving high production volume at its latest new plant in Shanghai.
Vehicle sales in China largely allowed Tesla to achieve record deliveries in 2020. It also made the introduction of a new crossover SUV, the Model Y, which Tesla began producing in large quantities in the first quarter of last year from its car plant in Fremont, California. .
According to NHTSA records on the production of light vehicles, in the period ending September 2020, Tesla manufactured more Y models than 3 models for American drivers. Historically, the company has not broken down sales figures by precise region or model. Instead, it combines sales of the Y and 3 model and the S and X model.
Since Tesla’s third-quarter earnings call in October 2020, the company’s share price has more than doubled, resulting in a market capitalization of more than $ 835 billion and the makes it the fifth most valuable company in the United States.
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