8:19 am, January 27, 2022
Tesla has posted record profits for last year with the electric car maker bringing in close to 40 per cent more earnings than in 2020.
The texas firm announced it made an eye-watering $5.5bn (£4bn) in 2021, compared to the previous record of $3.47bn (£2.57bn) in 2020.
The rise marks an improvement of around 37 per cent, in what was the EV giant’s third straight profitable year.
Figures published by Tesla show that the company made $2.32bn (£1.72bn) in the fourth quarter alone.
Excluding special items such as stock-based compensation, the company made $2.54 per share.
That beat Wall Street expectations of $2.36 per share with revenue for the quarter was up to $17.72bn (£13.16bn),
In a letter to shareholders, Tesla said 2021 was a breakthrough year for the company.
‘There should no longer be doubt about the viability and profitability of electric vehicles,’ the letter said.
In terms of sales, Tesla delivered a record 936,000 vehicles last year, nearly double the 2020 figure.
Fourth-quarter vehicle sales hit 308,600, also a record.
Tesla says it expects 50 per cent annual growth in vehicle deliveries ‘over a multi-year horizon’.
The company said its factories have been running below their capacity for several quarters, limited mainly by supply-chain constraints that are likely to continue through this year.
It also said CEO Elon Musk was awarded 245 million dollars (£181m) in the fourth quarter because he reached some operational milestones in his compensation package.
First Model Y deliveries expected but Cybertruck remains in development
Tesla also told shareholders that it started building Model Y SUVs late last year at its new factory near Austin.
After final certification, it plans to start delivering them to customers.
The company said it is testing equipment at its new factory in Germany, and is still trying to get a manufacturing permit from local authorities.
It still lists the Cybertruck electric pickup as ‘in development’. It was supposed to go on sale last year.
Tesla Cybertruck
The company said it was able to drive cost reductions in the final quarter of the year, as well as grow vehicle sales.
However it faced rising raw-material, commodity and logistics costs as well as increased warranty and recall expenses.
Tesla also said that ‘Full Self-Driving’ software is now being tested on public roads by owners in 60,000 vehicles in the US.
The software, which costs $12,000 dollars and cannot yet drive itself, is a primary area of focus for the company and should accelerate Tesla’s profitability, the company said.
Tesla’s shares initially tumbled in extended trading after the earnings were announced but recovered to rise slightly.
The stock closed on Wednesday up two per cent to $937.41.
