Tesla (TSLA34) reports record 4th quarter revenue, but signals supply chain problems; stock closes down 11.5%

Electric vehicle maker Tesla (TSLA34) released its fourth quarter 2021 results the night before with numbers that excited investors.

The company reported record revenue of $17.7 billion, up 65% year-on-year, beating market expectations (according to Refinitiv compilations) of $16.6 billion by 6%. Earnings per share were $2.54 versus the $2.37 analysts projected, a positive surprise of 7%.

For the year, the company posted adjusted earnings of $2.9 billion, up from $903 million a year earlier and the $2.6 billion forecast by analysts consulted by Refinitiv.

In addition, the company delivered more than 936,000 vehicles worldwide in 2021, an increase of 87% on an annual basis and above the projected average annual expansion of 50% over several years.

Gross margin “ex” credits was 29.2%, an increase of 8.5 percentage points against the fourth quarter 2020 base.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $4.09 billion, up 121%. Therefore, the operating margin closed the quarter at 23.1%, an expansion of 5.8 percentage points against the same period in 2020.

“Tesla’s result came in very solid and slightly above expectations, especially in terms of margins. Undoubtedly, 2021 was a year that took the company to another level in terms of fundamentals”, highlights the analysis team at Levante Ideias de Investimentos.

In contrast, the company has signaled that global supply chain problems, which have contributed to a reduction in sales for most other major automakers, will also hit Tesla in 2022.

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“Our own factories have been running below capacity for several quarters as the supply chain has become the main limiting factor, which is likely to continue through 2022,” the company said.

XP points out that, looking ahead, Tesla’s two new factories in Texas and Berlin could eventually double production capacity, but the company didn’t elaborate much on expansion plans.

However, the company’s Fremont plant reached a production record in 2021 and the company believes there is potential to extend total capacity beyond 600,000 EVs a year.

At the earnings conference, Elon Musk, the company’s CEO, said that the Optimus Human Robot is the most important project Tesla will be working on this year.

“For the CEO, humanoid robots will be important to address the US labor shortage, and their first use will be in their own factories. In addition, Musk also announced that the company will not be releasing new vehicle models this year.”

At 11:25 am ET, stocks traded between slight losses and gains on the Nasdaq pre-market. On the B3, BDRs (Brazilian Depositary Receipts) TSLA34 fell 0.85%, to R$ 158.10.

However, the shares increased the losses: in the US, assets closed down 11.55%, at US$ 829.10, while BDRs fell 12.27%, at R$ 139.90.

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About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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