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Tesla described the past year as a “transformative” year for the electric carmaker, as it reported its sixth consecutive profitable quarter on Wednesday, giving it a full-year profitability, which CEO Elon Musk wins.
The company generated $ 270 million in net income in the fourth quarter, or $ 0.80 cents per share, slightly below Wall Street’s estimates of $ 1.03 per share. Revenue was estimated at more than $ 10.7 billion, while the company delivered 180,667 vehicles in the quarter. For the full year, Tesla earned $ 721 million in net revenue of $ 31.5 billion.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| TSLA | TESLA INC. | 864.16 | -18.93 | -2.14% |
The company has announced ambitious delivery plans.
“Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries,” Tesla said in a statement. “In some years we can grow faster, which we expect to be the case in 2021.”
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The average selling price for Tesla vehicles fell 11 percent year-on-year as production shifted from the Model S and X vehicles to the more affordable Model 3 and Y vehicles. The Model S and X accounted for 18,966 of the total vehicles delivered in the quarter, while the Model 3 and Y accounted for 161,701 of the total deliveries.
The company said earlier that it delivered 499,550 vehicles by 2020, which is less than the estimate of half a million vehicle deliveries. It produced 509,737 vehicles during the year.
In addition, the company’s gross margins reached 19.2 percent, the lowest since the fourth quarter of 2019. The company also reported a positive free cash flow for the year of $ 2.79 billion, while capital expenditure was $ 1.15 billion. achieved.
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During the quarter, Tesla made a series of upgrades to its facilities.
Tesla’s Fremont, California factory now features a new drivetrain, a brand new interior, exterior updates and other improvements. Production on new Model S and X vehicles will resume in the first quarter and resume to full capacity over time. Tesla also plans to increase production of Model Y at the facility, which will “include integration of a casting from a rear chassis to meet customer demand.”
Meanwhile, Tesla’s Gigafactory in Shanghai increased Model 3 production to more than 5,000 cars per week and began manufacturing its newer Model Y vehicles. The company recently began shipping the new Model 3 vehicles to several countries in Europe and the Asia-Pacific region with a “strong response” from customers.
The company also remains ‘on track to start producing vehicles this year with structural batteries using internal battery technology’ at its factories in Berlin and Austin, Texas, where the company will build up production of the new Model S and X and the first Tesla Semi by the end of the year.
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“While our total market share in Europe increased in 2020, Gigafactory Berlin should enable a significant increase in local deliveries, similar to what we saw after the construction of Gigafactory Shanghai,” Tesla said in its shareholder letter. “The expansion of our factory in Berlin is continuing as planned.”