The employees will work in the Tesla Gigafactory in Shanghai, East China on November 20, 2020. The US electric car company Tesla built its first gigafactory outside the US in the new Lingang region in 2019 with a planned annual production capacity of 500,000 units.
Ding Ting | Xinhua News Agency | Getty Images
Tesla reported profits after the bell and it’s a loss of profit but another profitable quarter for Elon Musk’s electric vehicle and solar businesses.
Shares fell more than 6% on the news after hours and rebounded quickly.
Here are the results versus analysts’ expectations according to Refinitiv estimates:
- Merits: 80 cents adj. versus $ 1.03 per share expected
- Revenue: $ 10.74 billion versus $ 10.4 billion expected
Tesla’s gross margin hit 19.2% in the fourth quarter of 2020, its lowest level since the last quarter of 2019. Capital expenditures for the quarter were $ 1.15 billion and Tesla had positive cash flow for the quarter and full year of 2020 .
Tesla previously said it had delivered 499,550 vehicles in 2020, barely falling short of its forecast for half a million vehicle deliveries in 2020. (Deliveries roughly correspond to the sales figures quoted by Tesla.) 509,737 vehicles were produced in the course of the year.
Both deliveries and production numbers set new records for Elon Musk’s mature electric car company. This was viewed as a triumph in a year when auto sales and factory operations were dampened by a global pandemic.
Tesla anticipates positive cash flow and net income from late 2019, with possible exceptions related to the introduction and increase in production of new products or facilities. The final quarter marked the fifth straight quarter that the company’s profitability was included in the S&P 500.
Tesla is currently building new factories in Austin, Texas and Brandenburg, Germany after rapidly building and achieving high volume production at its last new facility in Shanghai.
Vehicle sales in China largely enabled Tesla to achieve record deliveries in 2020. So did the launch of a new crossover SUV, the Model Y, which Tesla began producing in large quantities at its Fremont, California auto plant in the first quarter of last year.
By September 2020, Tesla was making more Model Ys than Model 3 for US drivers, according to NHTSA light vehicle production records. The company has not historically broken down sales by region or exact model. Instead, Model Y and Model 3 and Model S and X sales are combined.
Since Tesla’s earnings forecast for the third quarter of October 2020, the company’s share price has more than doubled. This gives Tesla a market capitalization of more than $ 835 billion, making it the fifth largest company in the United States
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