Tesla Inc on Wednesday forecast supply chain issues would persist throughout 2022 and limit electric vehicle production, while posting record quarterly revenue that beat Wall Street expectations.
The outlook showed that even Tesla cannot avoid the shortages that were pitfalls for many larger automakers last year. And Tesla has the additional challenge of opening two new factories this year with chips and other parts in short supply.
Shares rose 1% in after-hours trade after an initial drop.
Here’s how the company performed:
- Earnings (adjusted): $2.52 per share, vs. $2.36 per share expected by analysts, according to Refinitiv
- Revenue:$17.72 billion, vs. $16.57 billion expected by analysts, according to Refinitiv
Revenue rose 65% year over year in the quarter, while automotive revenue totaled $15.97 billion, up 71%, according to a statement.
Energy generation and storage revenue was $688 million, which was down 8% and below the StreetAccount consensus of $815.1 million. It was the lowest revenue for that division since the first quarter of 2021.
Net income, at $2.32 billion, was up some 760%, and Tesla said it had a 27.4% gross margin, compared with 26.6% in the previous quarter.
“Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through 2022,” the company said.
In 2021,Tesla delivered 936,172 vehicles, an 87% increase versus 2020 when it reported its first annual profit on deliveries of 499,647. Its 2021 deliveries included 308,600 electric vehicles in the fourth quarter. (Deliveries are the closest approximation to sales reported by Tesla.)
Full-year GAAP profit rose to $5.5 billion from $721 million in 2020, while 2021 sales rose 71% to $53.8 billion, from $31.5 billion in 2020. Tesla said it ended the quarter with $2.8 billion in free cash flow. Total debt excluding vehicle and energy-product financing fell to $1.4 billion at the end of the year, it said.
The company said it started building Model Ys in late 2021 at its factory in Austin, Texas, and plans to start deliveries of the compact SUV after final certifications. The Tesla Fremont factory in the San Francisco Bay Area reached “record production” last year, and could expand its capacity beyond 600,000 vehicles a year, Tesla said.
Tesla's $4.09 billion in adjusted earnings before interest, tax, depreciation and amortization (EBITDA) beat the consensus estimate of $3.89 billion, according to Refinitiv. That appeared to qualify Chief Executive Officer Elon Musk for an additional options payout under his 2018 compensation package.
Quarterly profits took a $340 million hit from payroll taxes related to Musk exercising options related to his 2012 compensation package.
The profits also reflected rising raw material, commodity and logistics costs and expenses related to warranties and recalls. Tesla is recalling more than 475,000 of its Model 3 and Model S electric cars to address rearview camera and trunk issues that increase the risk of crashing.
CEO Elon Musk and other execs are expected to give a progress update on the company’s long-delayed heavy duty Semi truck, experimental Cybertruck pickup, and plans for driverless vehicle systems and a $25,000 compact car.