Tesla has broken all records for both revenue and earnings, exceeds expectations of Wall Street analysts and reports very healthy numbers for its fiscal fourth quarter of 2021. The company has achieved revenue of $17.72 billionwith a net business margin of 30.6% and a free cash flow of 2,780 million.
Tesla’s revenue has increased by 65% year-on-year, with profits from car sales equivalent to 15,967 million dollars. An increase of 71% year-on-year. Hours ago it was revealed that the Model 3 was the best-selling car, in general, in Europe during December 2021.
Additionally, revenue and earnings guidance for the coming quarter has been updated and the company expects even better results. “2021 was a huge step forward for Tesla. There is no doubt about the viability and profitability of electric cars. With an 87% increase in our car deliveries, we have achieved the best quarter, achieving the best margins in all the markets where we operate, demonstrating that electric vehicles can be more profitable than internal combustion engine cars”, explains the financial report.
Tesla warns that the supply crisis will continue to affect throughout 2022
Supply chain problems will be the main limitation in Tesla’s production chain throughout 2022, the company warns in its report.
“During the fourth quarter of 2021 we have seen a continuation of the global crisis in supplies, transportation, labor and other areas, challenging and limiting our ability to run our factories at full capacity.”
“Our plan is to increase our manufacturing capacity as quickly as possible,” the financial report continues. “We expect to grow an average of 50 per year in car sales, but that pace will be marked by the capacity of our infrastructure, the efficiency of operations and the stability of the supply chain. Our factories have operated below their maximum capacity for several quarters due to the component crisis, which will continue in 2022”.
This last sentence has cost him a 5% drop in Tesla shares on Wall Street minutes after publishing financial results. Although the general market climate in recent weeks has not been favorable for any company, the share price is expected to recover, especially considering the rapid growth that the company is experiencing.