(Bloomberg) — Tesla Inc. reported fourth-quarter results that beat Wall Street estimates, setting a record for the electric-car maker, but warned supply-chain troubles will limit production into 2022.
The automaker, headquartered in Austin, Texas, reported fourth-quarter earnings of $2.88 billion, or $2.54 a share, excluding some items, on strong sales of its mass-market models. That was above analysts’ estimates of $2.36 a share.
Tesla delivered more than 936,000 vehicles worldwide in 2021, up 87% from the year before and above the 50% average annual expansion projected over the course of several years. But it’s now cautioning the shortages that cut sales for most other major automakers will squeeze Tesla, too.
“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,” Tesla said.
Shares of Tesla were little changed in extended trading after initially falling sharply. The stock advanced 2.1% to $937.41 at the close Wednesday in New York and is down 11% this year.
Revenue for the quarter grew 65% to $17.7 billion, compared with estimates of $16.6 billion, the company said Wednesday.
“The commentary on the risk factors is taking on a different weight in the current environment,” said Gene Munster of Loup Ventures. “Whenever there are unknowns about the future it can spook investors a little bit.”
Musk’s ‘Product Roadmap’
Chief Executive Office Elon Musk is expected to join a conference call later Wednesday to update Tesla’s “product roadmap.” That may include new information about the Cybertruck, a prototype that Musk recently tweeted he is personally testing at Tesla’s new factory in Austin. Musk will be back on the call after announcing in July 2021 that he would only attend if he has “something really important that I need to say.”
The quarterly results allowed Tesla to turn a profit in consecutive years for the first time since its founding in 2003.
The company’s fourth quarter automotive gross margin, a key measure of profitability, grew to 30.6%, or 29.2% without regulatory credits, a slight improvement from last quarter.
Tesla has generated billions in revenue by helping other automakers comply with stricter emissions regulations, although it doesn’t specify how much is coming from particular manufacturers or give regional breakdowns. Revenue from those credits came to $314 million, up from $279 million in the prior quarter.
Tesla also said its cost per vehicle dropped to $36,000 in the last half of 2021.
(Updates with investor comment in seventh paragraph.)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
