For Tesla, 2021 is a breakthrough year, which not only proves the viability of electric vehicles with deliveries, but also proves the profitability of electric vehicles with profits. On January 26, Tesla said in the fourth quarter of last year's financial report that as far as the current data is concerned, Tesla has achieved the highest quarterly operating profit margin among all the car companies that have achieved mass production, "indicating that the profitability of electric vehicles is higher than that of internal combustion engine models."
In the last quarter of 2021, Tesla's revenue was $17.719 billion, up 65% from the same period a year earlier; gross profit was $4.847 billion, up 135% year-over-year; adjusted EBITDA was $4.09 billion, up 121% year-over-year; net income attributable to common shareholders was $2.321 billion, up 760% year-over-year; earnings per share attributable to common shareholders were $2.05, up 754% year-over-year. Free cash flow was $2,775 million, up 49% year-over-year.
Among them, the quarterly revenue of the automotive business was US$15.976 billion, an increase of 71% year-on-year; the gross profit of the automotive business was US$4.882 billion, an increase of 118% year-on-year; and the gross profit margin was 30.6%. Among them, the sale of regulatory credits brought Tesla $314 million in operating income, down 22% year-on-year.
Tesla profitability; Image source: Tesla
For the full year 2021, Tesla's revenue reached $53.823 billion, up 71% from the previous year; gross profit was $13.606 billion, up 105% year-on-year; adjusted EBITDA was $11.621 billion, up 100% year-on-year; net profit attributable to common shareholders was $5.519 billion, up 665% year-over-year; earnings per share attributable to common shareholders were $4.9, up 666% from the previous year. Free cash flow was $5.015 billion, up 80% year-over-year.
Tesla's automotive business generated full-year revenue of $47,232 million, up 73% year-over-year; gross profit from the automotive business was $13,839 million, up 98% year-over-year; and gross margin was 29.3%. Among them, the sale of regulatory points brought Tesla $1.465 billion in operating income, down 7% year-on-year.
The sharp increase in deliveries is a big reason for Tesla's rising profits. In 2021, Tesla produced a total of 930,422 new vehicles, up 83% year-on-year; delivered 936,222 new vehicles, an increase of 87% year-on-year. In addition, the continuous decline in the cost of bicycles is also an important reason for the rise in profits, but the rise in raw materials, logistics and other costs has also brought about a certain impact. Tesla pointed out that in the fourth quarter of last year, it still faced problems in the global supply chain, transportation, manpower and other fields, limiting the production speed of its factories.
Tesla Berlin factory; Image source: Tesla
In the earnings report, Tesla revealed that its new plant in Texas, USA, has begun to produce Model Y at the end of 2021, and will begin to be officially delivered after obtaining final certification; the annual output of the Fremont plant will also reach a new high in 2021 and is expected to exceed 600,000 units per year; the Shanghai plant is still an export center; the German factory is still in the process of applying for manufacturing qualifications, and the first batch of vehicles put into production will use 2170 batteries.
Tesla's Texas factory; Image source: Tesla
In 2022, Tesla plans to expand production capacity as soon as possible and hopes that in the next few years, annual vehicle deliveries will grow at a rate of 50%. Due to constraints on the supply chain side, the production speed of Tesla's factories has been lower in the past few quarters, and this situation is expected to continue throughout 2022.
Musk said Tesla will no longer launch new products this year, but there may be a good chance of launching Cyberruck, Semi and Roadster next year. For this year, the Optimus robot will be the most important job. "Humanoid robots are very important to solve the problem of labor shortage in the United States, and Tesla's own factories will adopt these robots first," Musk said at Tesla's earnings report. Over time, Optimus "may be more important than the automotive business."
Tesla Semi; Image source: Tesla
In addition, Musk also said that he expects Tesla vehicles to achieve full self-driving capabilities this year. At present, Tesla has 60,000 fully autonomous driving test vehicles in the United States.