Tesla Q4 2021 Earnings Report
Key Takeaways
Tesla's Q4 2021 saw a 65% YoY revenue increase to $17.7B. Operating income reached $2.6B with a 14.7% margin. Free cash flow was $2.8B, contributing to a $1.5B increase in cash and cash equivalents, reaching $17.6B.
Total revenue grew 65% YoY in Q4 to $17.7B.
Operating income improved to $2.6B in Q4, resulting in a 14.7% operating margin.
Quarter-end cash and cash equivalents increased sequentially by $1.5B to $17.6B in Q4.
Free cash flow of $2.8B in Q4.
Tesla
Tesla
Tesla Revenue by Segment
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. Hardware-related profits are expected to be accompanied by an acceleration of software-related profits. The pace of production ramps in Austin and Berlin will be influenced by new technologies, supply-chain challenges and regional permitting.
Positive Outlook
- Plan to grow manufacturing capacity as quickly as possible.
- Expect to achieve 50% average annual growth in vehicle deliveries.
- Sufficient liquidity to fund product roadmap and long-term capacity expansion plans.
- Expect hardware-related profits to be accompanied with an acceleration of software-related profits.
- Making progress on the industrialization of Cybertruck, planned for Austin production subsequent to Model Y.
Challenges Ahead
- Supply chain became the main limiting factor, which is likely to continue through 2022.
- The rate of growth will depend on equipment capacity, operational efficiency and the capacity and stability of the supply chain.
- Own factories have been running below capacity for several quarters.
- Pace of production ramps in Austin and Berlin will be influenced by ongoing supply-chain related challenges and regional permitting.
- Successful introduction of many new product and manufacturing technologies in new locations is needed.
Revenue & Expenses
Visualization of income flow from segment revenue to net income