Tesla Posts 1st Annual 721 Million Profit But Misses Analysts’ Estimates

Tesla Posts 1st Annual 721 Million Profit But Misses Analysts’ Estimates

For the first time in its history, Tesla closed a year with net profits by reporting earnings of 721 million dollars in 2020 this Wednesday, compared to the 862 million losses in 2019, after winning 270 million dollars in the last quarter of the year.

Tesla also said Wednesday that it produced a record 509,737 vehicles in 2020, of which 179,757 were manufactured in the last quarter of the year. The company delivered a total of 499,647 vehicles in 2020.

“The year 2020 was a defining year for us on many levels. Despite a challenging environment, we reached the important milestone of producing and delivering half a million vehicles. I want to thank the amazing people at Tesla again for an extraordinary effort. Last year we delivered almost as many vehicles as we have produced in our entire history. An incredible rate of growth, “said Tesla CEO Elon Musk during a conference call with analysts and the media.

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Musk also announced the launch of a new version of the Model S saloon, called Plaid, which according to the businessman, will be the street vehicle with the most acceleration capacity in history since it will be able to go from 0 to 100 kilometers per hour in less than two seconds.

Musk added that the Model S Plaid, which begins shipping in February, will be “better in many other ways” than the current Model S, will feature three engines, and will cost $ 119,990. Tesla will also launch an updated version of the Model S that will cost $ 79,990, $ 10,000 more than the current one.

Company documents note that new versions of the Model S and Model X will have new battery modules, new batteries and power units, new interiors and exteriors “and other improvements.” To produce the new versions, the Fremont (USA) assembly plant has been renovated in recent weeks.

The CEO of Tesla ended by noting that “2021 will be even more exciting” for the company and that he has no plans to leave the management of the luxury electric vehicle manufacturer for the time being, although he acknowledged that the position is very demanding.

Tesla noted that its 2020 revenue totaled $ 31,536 million, 28% more than the previous year, while operating expenses stood at $ 4,636 million, a 12% increase. The company’s operating margin stood at 6.3%.

The manufacturer had an adjusted gross operating profit of $ 5.817 million in 2020, 95% more than in the previous year.

In the fourth quarter of 2020, Tesla had revenues of 10,744 million dollars, 46% more than in the same period of 2019, while operating costs stood at 1,491 million dollars, with a 44% increase.

Tesla noted that the revenue growth for 2020 as a whole was the result of “substantial growth in vehicle delivery as well as growth in other parts of the company.” But the company added that the median sales price fell 11% as it sold more of the Model 3 and Model Y, which are cheaper than the Model S and Model X.

The company ended 2020 with liquid reserves equivalent to 19,384 million dollars, 209% more than a year ago thanks in part to the raising of 5,000 million dollars of capital.

“The past year was transformative for Tesla. Despite unexpected global challenges, we surpassed many trends seen in the industry as we significantly increased production volumes, profitability and liquid generation,” Tesla said.

For the next few years, the company plans to increase the delivery of vehicles at a growth rate of 50% per year, although it indicated that in 2021 this figure will be higher.

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