Employees are working at the Tesla Gigafactory in Shanghai, eastern China, on 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 projected annual production capacity of 500,000 units.
Ding Ting | Xinhua News Agency Getty Images
Tesla reported earnings after the bell and is a loss of earnings, but another profitable quarter for Elon Musk’s electric and solar vehicles.
Shares initially fell after hours by more than 6% on the news and quickly began to return.
Here are the results, compared to analysts’ expectations according to estimates compiled by Refinitiv:
- Earnings: 80 cents adj. vs. $ 1.03 per share expected
- Income: $ 10.74 billion compared to the expected $ 10.4 billion
Tesla’s gross margins reached 19.2% in the fourth quarter of 2020, the lowest in the last quarter of 2019. Capital expenditures 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 2019 figure of $ 1.08 billion.
Tesla previously said it delivered 499,550 vehicles in 2020, down from its guidelines for half a million vehicle deliveries in 2020. (Deliveries are the closest approximation to the number of sales revealed by Tesla.) It produced 509,737 vehicles during the year.
Both deliveries and production numbers set a new record for Elon Musk’s mature electric car company, seen as a triumph in a year in which car sales and factory operations were hampered by a global pandemic.
The last quarter was the fifth consecutive quarter of profitability – which led to the company’s addition to the S&P 500.
Tesla is currently building new plants in Austin, Texas and Brandenburg, Germany, after quickly building and reaching a large production volume at its latest new plant in Shanghai.
Vehicle sales in China largely allowed Tesla to reach record deliveries in 2020. So did the introduction of a new crossover SUV, the Model Y, which Tesla began producing in serious volumes in the first quarter of last year. from his plant in Fremont, California. .
By the end of September 2020, Tesla was manufacturing more Y models than the 3 models for American drivers, according to NHTSA light vehicle production records. Historically, the company has not broken down sales figures by region or exact model. Instead, it combines sales of models Y and 3, and models S and X.
Since Tesla’s third-quarter earnings call in October 2020, the company’s share price has more than doubled, giving it a market capitalization of more than $ 835 billion and making it the fifth most valuable company in the world. US.
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