2020’S Q4 marks Tesla’s sixth consecutive quarter of making profits. The figure which is approximately $270 million - doubles what the company posted in the previous year’s final quarter.
For the quarter ending on December 31,2020 - Tesla announced its earnings per share were 24 cents on a GAAP basis.
(2016) Tesla announced plans to scale up production of its Tesla model 3 electric vehicles. The plan was to increase the consumer grade vehicles to 500,000 by 2020. Most analyst’s would go on to denounce the viability of the ambitious plan.
Tesla has been able to crowd-out the notion that USA cannot produce affordable automobiles. With little investment as compared to other vehicle manufacturers, Tesla has shipped approximately 300,000 tesla model 3ys at a low sticker price of $35,000
2020’S Q4 marks Tesla’s sixth consecutive quarter of making profits. The figure which is approximately $270 million - doubles what the company posted in the previous year’s final quarter. By a narrow margin, the revenue went beyond analyst predictions. As observed, Tesla’s annual deliverabilities witnessed robust growth , having increased its vehicle deliveries by 36%. In 2020, Tesla delivered nearly 500,000 vehicles. A milestone that has enabled the company’s CEO, Elon Musk hit targets he’d already set five years ago.
For the quarter ending on December 31,2020 - Tesla announced its earnings per share were 24 cents on a GAAP basis. And for the it’s first full year in profits - 64 cents. The entire quarterly revenue was led by Tesla’s Model 3 and Y, which raked $10.7 and $31.5 billion. In a press statement in the fall of 2020, Elon Musk admitted the primary causal of the results was positive volume growth and rising credit revenue.
As a matter of fact, Tesla investors were anticipating a solid financial report and positive growth for Q4 2020. The dramatic growth in deliveries in the last year raised investor optimism on the kind of results they’d expect on January 27th.
While this company had faced five straight profitable quarters, the company's perfomance was interrupted by the market crash induced by Covid-19. The perfomance of Tesla’s stock ran into a sort of hiatus around the start of Q1 , 2020 and recovered towards the beginning of September. Despite the market crush however, Tesla went on to post a remarkable record of 621% returns over the past year - skyrocketing its stocks above the S$P 500’s sum returns by approximately 16.0%.
Besides increased vehicle deliveries, other points of success that made this year a success for Tesla include:
Efficient Supply chain management - 2016, Tesla announced plans to scale up production of its Tesla model 3 electric vehicles. The plan was to increase the consumer grade vehicles to 500,000 by 2020. Most analyst’s would go on to denounce the viability of the ambitious plan. Particularly for a company that had no prior experience in large scale production of automobiles. Using a pre-ordered invoice, Tesla would go on and have upto 400,000 prospecting consumers pay $1000 each as pre-order payments. Forbes contributor Kevin O'Marah says “Tesla is selling a giant iphone.” By pioneering the first mechanical hybrid technology , building it up from the ground - and using digital supply chain management in shipping of products ; Elon musk has earned a place in the world as a visionary.
Visionary - Presently it seems Tesla remains the only Original Equipment Manufacturer engaged in the creation of enterprise value. This is reflected in the packaging of its technologies in a way that deploys new functionality, ramped up capabilities and fresh robustness.
Reduction of Manufacturing Costs - Despite most manufacturing companies walking away from the USA and the costly labour market of California; Tesla has been able to build a low-cost manufacturing industry in the heart of California.
Less than 18 miles away from the manufacturing factory , is Palo Alto - the location of its headquarters. The region homes some of the world’s most experienced, talented and expensive labor you could find. Additionally, the cost of rent, property and services is as high as the deep pockets of those living in California.
Despite, Tesla has been able to crowd-out the notion that USA cannot produce affordable automobiles. With little investment as compared to other vehicle manufacturers, Tesla has shipped approximately 300,000 tesla model 3ys at a low sticker price of $35,000. The secret behind this lies in the implementation of AI in the factories, advanced robotics and strategic design achitecture that has provided the company with enough flexibility to reduce the cost of manufacturing.
Other strong Points Accounting for Tesla’s Rapid Success
Favourable price points
Capacity build-out
Boosting Gigafactory efficiencies
Battery technology process
Battery technology
Full self driving (FSD ) vehicles
Industry Analysis
Europe Sales - Penetration of electric vehicles in Europe accelerated by 24%. Seven key market points constitute evaluation points of the European Union market, whose data was sampled. All the data points revealed how sales and the market for EV was accelerating towards new highs.
China Sales -Penetration of EV approached 10%. Sales of Electric Vehicles in China increased by +77% yr/yr. December marked the six consecutive months of positive growth for the industry.
US Sales - For the 4th consecutive months, penetrative sales of EV accelerated. PHEV+ BEV estimated sales hit +41.7% yr/yr in the month of December,2020. The sales for BEV surged by +58.6% yr/yr to 33,175. Across all market points, the figures posted record positive growth.
Bullish investors believe Tesla will lead the manufacturing industry in the commercialization of digitally autonomous automobile tech. You’ve seen the doubling of sticks since the beginning of November. A situation that has left investors puzzled the direction these stocks will take. The company’s shares rose by 700 percent through the past year and skyrocketed the firm to one of the most valuable automobile manufacturers in the world. The company hit a financial market capitalization of $819 billion. While the company was able to set and achieve a milestone of delivering atleast 500,000 vehicles by 2020, this is only a fraction of what pioneer automakers such as General Motors and Toyota ship every year. Yet Tesla , under the revolutionary guidance of Elon Musk has been able to beat its way towards the best. Well, it’s worth noting the company’s market capitalization currently sits at 26 times more its annual revenue and about 1000x its net income in 2020.
Tesla’s deliveries fell short by 4.4% following the pandemic. The pace of growth throughout the rest of last year has been above average. Other companies would have found the record straightly impressive. While it is, the pace of growth in 2020 was the slowest when it came to Tesla producing its yearly deliveries.
