As we all know, Tesla had a record-breaking 2020, that was otherwise burdened with the hardships brought on by the coronavirus pandemic. The California-based EV giant pulled out all the stops and managed to delivery 180,570 units and produce 179,757 units between October and December of 2020 alone. In addition to the incredible Q4 delivery numbers , Tesla became one of the most valuable companies in the world in 2020, let alone the most valuable automaker, all while managing to raise billions of dollars through a stock spilt and its integration into the S&P500.
Now we are learning the full year earning results from the EV giant as well as if its record breaking Q4 deliveries and production numbers reflect in its earnings report.
Tesla CEO, Elon Musk reiterated what a challenging yet rewarding year 2020 was, as his company managed to produce and deliver half a million cars. Unfortunately Tesla missed Q4 earnings estimates late Wednesday but had a profitable fourth quarter. The automaker expects to see a 50% delivery growth compared to 2020. Check out the results vs expectations below:
–Earnings: 80 cents adj. vs $1.03 per share expected
–Revenue: $10.74 billion vs $10.4 billion expected
Tesla reached gross margins of 19.2% in the fourth quarter of 2020, while capital expenditures hit $1.15 billion. The company also reported that it more than doubled its positive free cash flow compared to 2019 to $2.79 billion for 2020.
In Q4 Tesla saw its energy generation and storage revenue reach $752 million, automotive revenue grow to $9.31 billion, and other services and revenue (vehicle accessories, merchandise, tequila, etc.) grow to $678 million. Furthermore, the automaker announced it put $522 million towards research and development, and almost a billion towards SG&A, sales, general and administrative costs in Q4 2020 alone.
Additionally, Musk confirmed new Model S and Model X Plaid vehicles with deliveries of the new Model S Plaid expected to begin in February, followed shortly after by the new Model X Plaid. Musk went on to say the new tri-motor Model S Plaid will be the first ever production luxury sedan to be able to achieve 0-60mph in just two seconds. He also announced it will have the option of third-row seating, holding up to seven passengers, and will cost around $10,000 more than the current Model S.
Musk applauded his company’s team on working around the hardships brought on by the current global pandemic while still achieving record delivery and production numbers. With the price of Tesla’s stock nearly doubling in recent weeks, it’s current a market capitalization is $835 billion.