Car stuff (public number: chedongxi)
Author |Juice Haohan Mumi Alice
Edited by | Xiaohan
Net profit in 2021 soared by 665% year-on-year, and Tesla has entered the ranks of the most profitable car companies!
Just this morning, Tesla officially announced its 2021 full-year financial report and held a conference call to summarize its progress in factories, robotics, autonomous driving and other fields.
2021 is destined to be a milestone year for Tesla, in the past fourth quarter Tesla delivered a total of 308,600 vehicles, a total of 936172 vehicles delivered throughout the year, which is very close to the million mark.
In terms of revenue, Tesla's total revenue for the full year in 2021 reached $53.823 billion (about 340.193 billion yuan), an increase of about 71% year-on-year. GAAP's net profit reached $5.519 billion (about 34.883 billion yuan), a year-on-year surge of 665%, which was Tesla's most profitable year.
At the technical level, Tesla updated the FSD 7 times in the fourth quarter of 2021, and the current test scale in the United States has reached nearly 60,000 people, and the fourth quarter also updated the user interface of the car to continuously improve the user's car experience.
But 2021 will not be smooth sailing for Tesla. Delaying the start of production at the Berlin and Texas factories may have become Musk's biggest regret last year. Although both factories have carried out trial production, neither has yet received a final production license from the local government. However, this issue should be successfully resolved this year.
▲Inside Tesla's Berlin factory
In the subsequent conference call, Musk once again went online to talk about hot topics such as Cyberruck, 160,000 entry-level models and 4680 batteries, Cybertruck, 160,000 entry-level models still can't be launched this year, and 4680 batteries may first be put into production in the Texas factory.
In addition, Musk has further answers to Tesla's humanoid robot, FSD and even the UBI insurance product system.
At present, Tesla will not update the product line this year, the main task is to increase production capacity, with four factories put into production at the same time, Tesla's output this year will have a significant increase. According to Tesla's approval, sales will inevitably rise.
It can be said that in the face of the rapid turnaround of traditional car companies, Tesla has prepared countermeasures.
First, the annual sales of more than 900,000 units nearly doubled year-on-year
In the fourth quarter of 2021, Tesla performed well in car deliveries, quarterly revenue and quarterly net profit.
In terms of automobile production and sales, Tesla produced about 305,800 vehicles in the quarter, an increase of 70% year-on-year. Among them, the Model S/X produced about 13,000 units, down 19% year-on-year. The Model 3/Y produced approximately 292,700 units, up 79% year-on-year.
▲ Tesla's 2021 production trend chart
In the quarter, Tesla vehicles also delivered more than 300,000 units, reaching 308,600 units, an increase of 71% year-on-year.
Among them, the Model 3 and Model Y are still the main force of Tesla's sales, with a total of more than 296,800 units delivered, an increase of 84% year-on-year, while the Model S/X delivered about 11,700 units, down 38% year-on-year.
▲ Tesla's 2021 delivery volume trend chart
It is worth mentioning that the production and sales of the new Model S/X released by Tesla last year exceeded 10,000 units in the fourth quarter of 2021, the first time in 2021.
In the full year of 2021, Tesla produced more than 900,000 vehicles, reaching 930,400 units, of which the Model S/X produced a total of about 24,300 units and the Model 3/Y produced about 906,000 units. Tesla's production and delivery volume in 2021 are not much different, and it also exceeds 900,000 units, reaching 936,200 units, of which the Model S/X delivers about 24,900 units in the whole year and the Model 3/Y delivers 911,200 units in the whole year.
▲ Tesla 2021 sales data sheet
Both figures in 2021 have essentially doubled Tesla's full-year production of 509,700 units and deliveries of 499,600 units.
This also shows that Tesla can produce as much as it can sell.
Second, net profit reached $5.519 billion, up 665% year-on-year
In the fourth quarter of 2021, Tesla's total revenue reached $17.719 billion (about 111.994 billion yuan), an increase of 65% from $10.744 billion (about 67.908 billion yuan) in the same period of 2020.
Among them, Tesla's most important automobile business revenue was 15.967 billion US dollars (about 100.921 billion yuan), an increase of 71% year-on-year.
In terms of net profit, Tesla's GAAP net profit in the fourth quarter of 2021 reached 2.321 billion US dollars (about 14.670 billion yuan), up 760% year-on-year, and the operating profit margin in the fourth quarter reached 14.7%.
▲ Tesla's 2021 revenue change table
Meanwhile, Tesla's gross profit for the fourth quarter of 2021 reached $4.847 billion (about 30.636 billion yuan), an increase of 135% year-on-year, and GAAP gross margin was 27.4%. Among them, the gross profit margin of automobiles reached 30.6%, which is not much of a change compared with 30.5% in the third quarter of 2021.
In terms of cash flow, Tesla's cash and cash equivalents totaled $17.576 billion (about 111.091 billion yuan) in the fourth quarter of 2021, compared with $16.065 billion (about 101.540 billion yuan) in the third quarter of 2021. In addition, Tesla's free cash flow in the fourth quarter of 2021 totaled $2.775 billion (about 17.539 billion yuan), down 49% year-on-year, compared with $1.328 billion (about 8.393 billion yuan) in the third quarter of 2021, which has doubled.
From a full-year perspective, Tesla's total revenue for the full year of 2021 reached $53.823 billion (about 340.193 billion yuan), a significant increase of about 71% compared with $31.536 billion (about 199.326 billion yuan) in 2020. Among them, the automotive business revenue was US$47.232 billion (about RMB298.534 billion), an increase of about 73% year-on-year.
▲ Tesla's revenue trend chart in the past five years
GAAP net profit for the full year 2021 was US$5.519 billion ( approximately RMB34.883 billion ), an increase of 665% year-on-year.
In 2021, Tesla's free cash flow reached $5.015 billion (about 31.697 billion yuan), an increase of about 80% year-on-year.
Third, two new factories put into operation this year The Berlin plant has new technologies
Tesla also explained other aspects of the company in the earnings report, such as factory capacity, the progress of autonomous driving, and so on.
In terms of factory capacity, Tesla believes that the fourth quarter of 2021 was affected by global supply chain, transportation, labor and other manufacturing aspects, ultimately limiting Tesla's ability to operate the factory at full capacity.
At present, Tesla has two factories in the United States, of which the Austin plant in Texas has been completed, Tesla said that at the end of 2021, the factory has begun the trial production of Tesla Model Y models, and once it is finally certified, it will deliver the products produced by the factory to customers.
▲Tesla's Texas factory
According to the plan, Tesla's Cyberruck will also be produced at the Austin plant, the first model to be put into production at the plant is the Model Y, followed by the production of Cybertruck.
▲Inside Tesla's Texas factory
The Fremont plant achieved record production in 2021, and Tesla believes that the plant's total capacity will eventually exceed 600,000 vehicles. In the next step, Tesla will continue to increase the capacity of the Fremont factory, while continuing to build new factories.
▲Inside Tesla's Fremont factory
The Shanghai factory remains one of Tesla's most important factories, and the localization production model reduces the cost of vehicles while also ensuring the stability of the supply chain. In 2021, the Shanghai plant will mainly assume the production capacity of model 3 and model Y, and it is also a very important export center for Tesla.
▲Tesla Shanghai factory
As Tesla's second overseas factory, the progress of the Berlin factory has also been the focus of public attention. Tesla said that the plant has begun trial production at the end of 2021, but it has not yet obtained a manufacturing license from the local government, and it is not yet possible to confirm when the Berlin plant will officially start production and deliver.
For the news that has been rumored for a long time, "Tesla's Berlin factory will take the lead in using 4680 batteries", Tesla also responded in the earnings report, saying that the first models of the Berlin factory will continue to use 2170 batteries.
Tesla also stressed the need to expand production capacity as soon as possible in the earnings report, but due to supply chain problems, Tesla factories have been in a state of insufficient capacity for several consecutive quarters, and this state may continue into 2022.
Still, Tesla expects annual sales to grow by 50 percent a year, and according to this data, Tesla's sales target this year will be 1.5 million vehicles, but based on last year's performance, this goal should be easily achieved.
Fourth, the FSD test scale of nearly 60,000 Vehicle costs will be further reduced
Tesla also reported on the progress of the FSD Beta in the earnings report.
In the fourth quarter of last year, Tesla continued to iterate on the FSD Beta, releasing a total of 7 updates throughout the quarter. While the functionality continues to improve, the scale of testing is also expanding.
The current scale of FSD Beta testing in the United States has increased from a few thousand vehicles in the third quarter to nearly 60,000 vehicles now.
▲ Tesla FSD
In addition to consumer recognition, Tesla's autopilot system has also received authoritative certification. In the fourth quarter, IIHS gave Tesla's Model 3 and Model Y (both pure visual solution versions) "excellent" in terms of collision avoidance and Top Safety Pick+, which is also the agency's highest rating.
In the fourth quarter of last year, Tesla also released a new car user interface, simplifying the control menu and providing a better night mode; other aspects have also been greatly improved, such as blind spot monitoring, new light show features and a series of new gaming, entertainment and audio features.
In addition, Tesla also mentioned Tesla's strong manufacturing capabilities in the earnings report.
Because of the expensive batteries, many people think that electric vehicles have no way to reduce costs in structure, but Tesla does not think so. In the third quarter of 2021, Tesla reduced production costs, and now Tesla's main business cost per vehicle has dropped to $36,000 (about 228,000 yuan).
▲The mechanical spraying workshop in tesla factory
Tesla believes that with the application of integrated die casting machines, CTC technology, 4680 batteries and other projects, the production cost of products can be reduced to a minimum in the future.
Fifth, no new models will be launched within the year with 4680 batteries or delivered in Q1 this year
After the release of the earnings report, Tesla also held a conference call as scheduled, and Musk also answered some hot topics that attracted everyone's attention, and also further explained some key information in the financial report.
Shortly after the call began, Musk said 2021 was Tesla's most groundbreaking year. Tesla's production increased by nearly 90 percent for the full year last year.
Under such strong growth, Musk said that Tesla's focus in 2022 is still to increase production capacity. Musk said that Tesla's Berlin factory and Texas factory have already started trial production last quarter, so the goal of the next stage is how to speed up mass production time.
Previously, foreign media predicted that if Tesla's two new factories are officially mass-produced this year, then Tesla is very likely to reach the output of one million units this year.
Of course, Musk also euphemistically said that if Tesla focuses on increasing production capacity this year, then there will be no energy to launch new cars. This means that the high-demand electric pickup, Cyberteruck, and the 160,000 entry-level models are unlikely to be launched within this year.
▲Cybertruck
Despite jumping tickets again, Musk still drew a small pie - Cybertruck, Roadster and other vehicles, as well as Products such as Optimus robots will undergo a lot of engineering design this year, hoping to mass-produce next year.
In response to cyberruck's delayed production, Musk said that the battery may not be the limiting factor for Cyberruck, where there are still some new technologies that need to be completed. And the cost of Cyberruck also has to be controlled within a certain range, so Cyberruck has not been delivered. In addition, Musk said that Tesla's current goal is to produce 250,000 Cyberrucks per year.
Regarding the product line, Musk once again said amazingly. "I think over time, the Optimus robot will be one of Tesla's most important products, as important as the automotive business in the future, and it will alleviate the labor shortage."
▲ Tesla robot
"If there's no longer a labor shortage or something like that, I'm not even sure what the economy means."
Musk added that Tesla will first use Tesla robots in its gigafactory for handling jobs and more.
For the much-watched 4680 battery, Musk said that Tesla is currently producing 4680 batteries at its Austin plant in Texas, and if it goes well, the Tesla Model Y with 4680 batteries is likely to be delivered at the end of this quarter.
In addition, Musk also revealed that FSD will become the largest source of Tesla's revenue, and this year's subscription volume may reach a relatively high level.
On the conference call, an investor asked Musk if he was considering dividing the FSD package into "perpetual" and "recurring" (i.e., the car's lifespan) licenses. Perpetual permits can be linked to individuals or businesses, not to vehicles.
But Musk did not answer positively, but only vaguely said that Tesla may still consider the cost of the car when running FSD.
As for when to achieve true FSD full autonomous driving, Musk once again said harshly, "The level of human drivers is not a high standard at all."
Musk added that in the coming months, Tesla will make several more in-depth improvements to FSD.
Tesla insurance has also made new progress, Musk said, now Tesla has launched Tesla insurance in 5 states in the United States, California is also advancing, but in order to adapt to the law to make some adjustments. Musk directly said that some of California's regulations are harmful to consumer rights.
Tesla executives added that Tesla insurance will be slow to roll out nationwide in the United States because adjusting insurance regulations to the national level will require Tesla to communicate with each state's government.
But the executive also revealed Tesla's goal by the end of the year — to give 80 percent of U.S. customers the option to sign up for Tesla insurance, which means to promote insurance in as many regions as possible. In addition, he also said that before the end of this year, Tesla Insurance may be promoted to the European market.
Conclusion: Tesla began to run at full speed
At present, there are many players in the new energy vehicle market, traditional car companies have made efforts in electrification, and powerful players like Volkswagen have achieved good sales in many markets, which is also a big challenge for Tesla.
Therefore, whether it can be profitable is not the main problem of Tesla's thinking, and how to further seize market share in the future has become a new issue for Tesla.
For this problem, Tesla also gave a plan in the financial report, while increasing the capacity of existing factories, on the other hand, to build new factories. Not surprisingly, in the first quarter of this year, Tesla will have 4 factories at the same time, which will further expand Tesla's production capacity and promote sales growth.
At the same time, Tesla is also actively entering india, Turkey and other countries, and the pace of its globalization has accelerated significantly.
If you want to break through in the long-term competition, you can't slack off every moment, Tesla is obviously very aware of this truth, and in the next few years, it will be in rapid development.