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Dec 31, 2020
Tesla Q4 2020 Earnings Report
Tesla's Q4 2020 was marked by substantial growth in vehicle deliveries and other business areas, resulting in a 46% YoY revenue increase. Operating income improved to $575M, achieving a 5.4% operating margin, while quarter-end cash and cash equivalents rose to $19.4B, driven by capital raise and free cash flow.
Key Takeaways
Tesla's Q4 2020 saw significant revenue growth, driven by increased vehicle deliveries and other business areas. The company achieved a 5.4% operating margin and increased its cash and cash equivalents to $19.4B. Model Y production started at Gigafactory Shanghai in December 2020.
Revenue grew 46% YoY in Q4, driven by vehicle deliveries and other business areas.
Operating income improved to $575M in Q4, resulting in a 5.4% operating margin.
Cash and cash equivalents increased to $19.4B in Q4, driven by capital raise and free cash flow.
Model Y production at Gigafactory Shanghai started in December 2020.
Forward Guidance
Tesla plans to grow manufacturing capacity as quickly as possible, expecting 50% average annual growth in vehicle deliveries over a multi-year horizon. Operating margin is expected to continue to grow, reaching industry-leading levels with capacity expansion and localization plans. Model Y capacity is being built at Gigafactory Berlin and Gigafactory Texas, with deliveries expected to begin in 2021. Tesla Semi deliveries will also begin in 2021.
Positive Outlook
- Planning to grow manufacturing capacity as quickly as possible.
- Expect to achieve 50% average annual growth in vehicle deliveries.
- Operating margin will continue to grow.
- Building Model Y capacity at Gigafactory Berlin and Gigafactory Texas.
- Tesla Semi deliveries will begin in 2021.
Challenges Ahead
- Rate of growth will depend on equipment capacity.
- Rate of growth will depend on operational efficiency.
- Rate of growth will depend on capacity and stability of the supply chain.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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