【Pacific AutoMotive Network Industry Channel】Enter "Tesla" on the Internet, in addition to seeing the test drive experience of its models, you will continue to see large and small social news and netizen arguments, it seems that the three words "Tesla" have become traffic passwords. But in any case, Tesla's monthly sales and quarterly report cards are always too bright to open their eyes. A few days ago, Tesla finally released the fourth quarter and full year of 2021 financial report. This time, Tesla presented the best report card in nineteen years, and the number once again broke through the sky, with total deliveries of more than 900,000 vehicles, total revenue of $53.823 billion, gross profit of $13.606 billion, about one hundred million yuan a day... Tesla has entered the ranks of the most profitable car companies.
In this financial report, Tesla also updated the latest situation of the construction of gigafactories around the world, the latest progress in FSD automatic driving, robots, etc. The following let Xiaobian interpret them one by one for everyone.
Financial Report Highlights:
1. Tesla's fourth-quarter net profit was $2.32 billion, up about 760% year-over-year;
2. Tesla's automotive business revenue was $15.97 billion, up 71% year-on-year;
3. For the full year of 2021, Tesla delivered 936,172 vehicles, an increase of 87% year-on-year ;( lower than the company's previous expectation of 1 million ·
4. Tesla's supply chain problems continue, production capacity is limited, is expected to continue until 2022;
5. Tesla will not launch a new car in 2022.
Net profit reached $5.519 billion, up 665% year-on-year
Total revenue for the full year 2021 reached $53,823 million, up 71% year-over-year
In the fourth quarter of 2021, Tesla's total revenue reached $17.7 billion, up 65% year-over-year. GAAP (GeneralLy Accepted Accounting Standard) operating profit was US$2.6 billion, resulting in an operating margin of 14.7%. GAAP net profit was $2.3 billion, up 760% year-over-year, and non-GAAP net profit (excluding share-based expenses) was a record high of $2.9 billion.
Tesla's operating profit in the fourth quarter increased to $2.6 billion, with an operating margin of 14.7%, due to further reductions in bicycle costs, increased delivery volumes, and increased profitability in car rentals, services and other businesses.
In cash, cash and cash equivalents continued to increase at the end of the quarter, increasing by $1.5 billion to $17.6 billion in the fourth quarter, primarily driven by $2.8 billion in free cash flow, partially offset by $1.5 billion in debt and financial lease repayments. Excluding auto and energy product financing, Tesla's total debt fell to $1.4 billion at the end of 2021.
For the full year 2021, Tesla generated a NET PROFIT OF $5.5 billion and a FREE CASH FLOW of $5.5 billion in addition to $6.5 billion spent on new plant construction and other capital expenditures.
Tesla's automotive business margins improved from 25.6% in 2020 to 29.3% in 2021, and coupled with the 53% year-on-year growth rate of operating expenses is much lower than the revenue growth rate, Tesla can still achieve a gross profit growth rate of 105% in 2021 - this is also the first time since the delivery of the Model 3 that Tesla has achieved an annual gross profit growth rate of more than 100%.
Strong profitability was driven by further reductions in Tesla's bike costs, increased car deliveries, and increased profits from other businesses such as car rentals. Model Y is the key to Tesla's profit margins, and the localization of the Shanghai Gigafactory is also an important factor.
Tesla also said: "We will continue to innovate to reduce manufacturing and operating costs, and over time, we hope that hardware-related profits will accelerate in tandem with software-related profits." ”
Delivery of more than 900,000 Model3/Y in 2021 accounted for 97%
The Shanghai Gigafactory remains Tesla's main export center
In terms of production capacity, Tesla said it still faces the continuation of challenges brought by global supply chains, logistics and transportation, labor and other manufacturing aspects, which limit the factory's full production operation. Despite this, in the fourth quarter of 2021, Tesla achieved production efficiency of more than 1.22 million vehicles per year, while the annual production volume was 930422 units, and the delivery volume reached 936172 vehicles, setting a new record.
Among them, the Model 3/Y accounts for about 97% of the share, which is indispensable to the Credit of the Chinese market, after all, the Model Y alone has reached a good result of 170,000 vehicles sold in the whole year.
In addition, the imbalance in Tesla's product structure is quite obvious. The Model S and Model Y, which once created Tesla's luxury image, saw production fall by 19% in the fourth quarter, and full-year 2021 deliveries have fallen to a humble 24,964 units; while Model 3 and Model Y production rose 79% year-on-year, accounting for 97% of deliveries!
Of course, being able to have explosive products is something that countless car manufacturers can't ask for, and at this performance meeting, Tesla's financial executives also said that Model Y's proportion in sales can be increased, and higher profits can be obtained than Model 3. In the future, we will focus on increasing sales of new Model S and Model X, and use the unit price of customers to increase profit margins.
U.S. factories: California, Texas
At the end of 2021, production of the Model Y began at the Austin Gigafactory in Texas, and when the pre-manufactured Model Y completes all certification procedures, delivery to customers is scheduled to begin.
(Texas Gigafactory)
China factory: Shanghai
The capacity of the Shanghai Gigafactory has reached 450,000 units per year, and in 2021, it also set an astonishing record, achieving an annual delivery volume of 484,100 units, accounting for 51.7% of the total deliveries, of which more than 70,000 units in December, reaching 70,847 units. In terms of exports, the Shanghai plant contributed more than 160,000 units to the outside of the sea market, covering more than 10 countries such as Europe and Asia, of which the model 3 has exported more than 130,000 units in 2021. Tesla said the Shanghai Gigafactory remains the brand's main export hub.
(Shanghai Gigafactory)
European factory: Berlin-Brandenburg
The Berlin Gigafactory has started testing of equipment in the vehicle production process at the end of 2021, but its capacity planning has not yet been launched because the production license has not yet been issued. After obtaining manufacturing permits from local authorities, Tesla will begin delivering German-made vehicles in Europe. As Tesla's newly established production base in Europe, the core task of the Berlin Gigafactory is to produce the Model Y model, which will be equipped with a 2170 battery pack in the early stage, and a new 4680 cylindrical battery pack in the follow-up, as well as the corresponding body structure.
(Girberia Berlin)
This year still can't wait for a new car
Musk, who has not appeared at the earnings meeting for a long time, rarely appears this time. As soon as I arrived at the foreign media, I couldn't wait to ask whether the Cyberruck pickup truck could be delivered this year. Unfortunately, the answer remains: no.
In addition, for the previously rumored progress of the $25,000 entry-level model (or named Model 2), Musk admitted that it has not yet advanced development. Because there are too many things at hand now, it is a "mistake" to promote the development of cheap models. He also said, "What is really important is to achieve autonomous driving, which can reduce transportation costs by 4-5 times." ”
After being asked by reporters why did CyberTruck skip tickets? What limits its production? Musk said after a moment of silence: The 4680 battery will not become a limitation of CyberTruck, but the cost will. There are a lot of new technologies in CyberTruck that will take some time to mass-produce. In addition, the price of CyberTruck must also be reasonable, so the cost of the battery also needs to be controlled. The goal is to mass-produce in 2023, capable of manufacturing 250,000 CyberTrucks per year.
In fact, it is no wonder that everyone cares so much, after all, Musk also said on social media earlier that he had been testing Cyberruck at the Giga factory in Texas, and said "It's awesome!" (It's awesome).
(Tesla CyberTruck)
Cyberruck has received orders for 1.2 million units worth more than $80 billion. With the mass production delivery date still far away, the North American market has set off a pure electric pickup boom. For example, the Ford F-150 Lightning, which will go on sale this spring, received 20,000 bookings on the first day of pre-sale last year, and orders have soared to 200,000 units in recent days. Since the hot sales far exceeded Ford's estimated production capacity, Ford recently suspended the car's reservation. In addition, Chevrolet's first electric pickup, the Silverado EV, is expected to go into production in early 2023 and begin deliveries in the second half of 2023. Don't forget, the Rivian pickup truck, which is also a new force in American car manufacturing, is also eyeing the tiger. By the time Cyberteruck starts production at the Austin Gigafactory, it will inevitably face layers of siege from many opponents.
FSD is still in the inner side and the scale is constantly expanding
There are nearly 60,000 Teslas in the United States in testing
In this earnings report, Tesla also gave a timetable for when the FSD (fully autonomous driving capability) will officially open the push.
It is only mentioned that Tesla has been updating and iterating on the beta version of its fully autonomous driving capability (FSD) software for a long time, and released a total of seven updates in the fourth quarter. Tesla's software test vehicles in the U.S. also increased to nearly 60,000 from a few thousand in the third quarter.
Recently, the Model 3 and Model Y, which use a pure visual autonomous driving solution, received the highest safety rating in the Highway Safety Insurance Association (IIHS) crash test and received a single score of "excellent" for collision avoidance.
Musk also revealed that FSD will become the largest source of Tesla's revenue, and this year's subscription volume may reach a high level. Investors have asked whether Musk is considering dividing the FSD package into "perpetual" and "fixed- " (i.e. car lifespan) licenses, which can be linked to individuals or businesses rather than to vehicles. Musk only vaguely replied that Tesla may still consider the cost of the car when running the FSD. He also added that in the next few months, Tesla will make several more in-depth improvements to FSD.
In addition, in the fourth quarter of 2021, Tesla also released a new user interface, with a customized application launcher, simplified control menus, and support for night mode. It also includes real-time image of the car's blind spots when the car's turn signal is lit, editable navigation passpoints, and a range of new gaming, entertainment, and audio features. Early in the quarter, Tesla also developed real-time images of the car's cameras when Sentinel mode was activated in the app.
The earnings report also mentioned that manufacturing is Tesla's core competitiveness. Due to the high cost of batteries, electric vehicles used to be considered to have poor overall profitability. But Tesla lowered production costs in the third quarter of 2021 and said it surpassed all mass-produced automakers, creating the highest operating margins. In the third and fourth quarters of 2021, the cost of cycling has fallen to around $36,000. We believe that projects that currently include large castings, structural battery packs, 4680 batteries, and more will help sustainably reduce product costs.
Musk, who is not surprisingly deadly, also believes that the Optimus robot is the most important product he has developed, and may eventually surpass his automotive business, and that it will alleviate the labor shortage. "When the labor shortage is no longer there, I don't even know what 'economy' means."
Other highlights
· Energy storage
Thanks to the strong drive of energy storage product Megapack, Tesla's installed capacity of energy storage products in 2021 increased by 32% year-on-year. As market demand continues to outpace capacity, the growth of the energy storage business has been constrained by supply. Tesla is currently building a factory dedicated to producing Megapack products to meet growing market demand.
· Solar retrofits and solar roofs
Solar installed capacity will grow to 345MW (MW) in 2021, up 68% year-on-year, with almost all solar products purchased using cash or loans. Solar roof installations nearly tripled year-over-year in 2021 and continued to grow in the fourth quarter. Tesla is further optimizing costs, especially installation costs, to improve the profitability of energy products.
· Services and others
In 2021, gross margin in the Services and Other segments improved to -2.7%, the best performance in five years, and broke even in the fourth quarter of 2021. At the same time, Tesla's used car sales business remained strong, and profits from other businesses such as service, boutique and accessories sales also improved. In addition, Musk said that by the end of 2022, 80% of Tesla customers can choose Tesla insurance.
Edit the review
Tesla has grown faster than everyone expected, so much so that people expect Musk and the company, even beyond the scope of cars, hoping that they can continue to bring inventions that affect industrial production and human life. In 2021, Tesla deliveries increased by 87% and achieved the highest quarterly operating gross margin of any production OEM, and the process of replacing fuel vehicles with electric vehicles continues to accelerate.
50 or even 100 years later, children are opening history textbooks and ranking in Nikolai. Joseph. Will Gurion, Carl Benz, Henry Ford and other historical figures be Elon Musk behind them? (Photo/Text/Photo: Yang Jiazhen, Pacific Auto Network)