Tesla report beats forecasts: Four quarter 2021

Report from the electric car maker

Tesla (TSLA) has expectedly beaten market analysts' forecasts for both profits and revenues thanks to record sales of electric vehicles. However, Tesla's supply chain problems will prevent it from introducing new models in 2022.

Tesla (TSLA) shares, down 11.3% since the start of the year, were first down 4% on the post-market, but ended up halting at -0.8% decline.

Tesla report

Q4 earnings per share jumped 215% (from last year's value) to $2.52, higher than analysts' average forecasts of $2.36.

Quarterly earnings (net income) reached a record figure of $2.32 billion compared to $270 million in the same quarter in 2020.

Total revenues rose 65% to $17.72 billion compared to analyst estimates of $16.57 billion.

For 2021, total revenues rose 71% to $53.82bn and profits to $5.52bn compared to losses in 2020.

Annual deliveries of all Tesla models: Model S, Model X, Model 3 and Model Y for 2021 rose 87% to 936,222 from 499,647 units in 2020.

Tesla management highlighted a number of other achievements:

• Production of both the Model 3 and Model Y at Tesla's Shanghai plant continued to grow during 2021.
• Tesla began production at a new facility in Austin, Texas in late 2021, saying deliveries to customers will begin soon.
• Tesla will produce the Model Y at the new plant in Texas with new battery packs.
• The plant in Fremont, California, has reached record production levels with plans to increase capacity to 600,000 vehicles per year.

Also, an experimental testing programme for Tesla's driver assistance systems in cars, dubbed FSD Beta, has reached around 60,000 users in the US.

Musk also said the robotic humanoid, designed to "eliminate the dangerous, repetitive and boring tasks that humans do today", unveiled by Tesla in August 2021, could eventually grow into a bigger business than the company's car business.

The company has reiterated its expectation for the long term to increase average annual car deliveries by 50%. The table below shows current annual production rates at Tesla plants.

However, Tesla shares have lost 23.8% since the high on 4 November, the argument for a rebound in the price may not be enough, although the company's business is moving in the right direction.