Employees work at the Tesla Gigafactory in Shanghai, eastern China, November 20, 2020. In 2019, the American electric car company Tesla built its first Gigafactory outside the United States in the new Lingang area, with a designed annual production capacity of 500,000 units.
Ding Ting | Xinhua News Agency | Getty Images
Tesla reported earnings after the clock and it is a loss of earnings, but still a profitable quarter for Elon Musk’s electric vehicle and solar power business.
Shares initially fell by more than 6% on the news after hours and began to recover quickly.
Here are the results, against what analysts expected according to estimates compiled by Refinitiv:
- Earnings: 80 sent adj. against $ 1.03 per share expected
- Income: $ 10.74 billion against $ 10.4 billion expected
Tesla’s gross margins reached 19.2% in the fourth quarter of 2020, the lowest since the last quarter of 2019. Capital expenditure reached $ 1.15 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 $ 1.08 billion.
Tesla said earlier that it delivered 499,550 vehicles in 2020, and barely gave up the lead for half a million deliveries in 2020. (Deliveries are the closest approximation of sales figures Tesla has released.) It generated 509,737 vehicles during the year.
Both deliveries and production numbers set a new record for Elon Musk’s mature electric car business, seen as a triumph in a year when car sales and factory operations were dampened by a global pandemic.
Last quarter was its fifth consecutive quarter of profitability – which led to the company being added to the S&P 500.
Tesla is currently building new factories in Austin, Texas and Brandenburg, Germany, after quickly building and achieving a large production volume at its latest new plant in Shanghai.
Vehicle sales in China have largely enabled Tesla to achieve record deliveries in 2020. So did the launch of a new crossover sports utility vehicle, the Model Y, which Tesla began producing in serious volumes in the first quarter of last year from its car plant in Fremont, California. .
By the period ending in September 2020, Tesla had made more Model Ys than Model 3s for U.S. drivers, according to NHTSA records on light vehicle production. The company did not set out the sales numbers by region or exact model. Instead, it combines the sales of Model Y and 3, and Model S and X.
Since Tesla’s returns for the third quarter in October 2020, the company’s price has more than doubled, giving it a market capitalization of more than $ 835 billion, making it the fifth most valuable company in the US.
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