Tesla recently released its latest 2021 annual report, saying that Tesla's mission is to accelerate the world's transition to sustainable energy. Tesla designs, develops, manufactures, leases and sells high-performance all-electric vehicles, solar power systems and energy storage products. Tesla also provides maintenance, installation, operations, financial and other services related to Tesla's products. In addition, Tesla is increasingly focusing on products and services based on artificial intelligence, robotics and automation.
First, the highlights of 2021
In 2021, 930,422 vehicles will be produced and 936,222 vehicles will be delivered. Tesla is currently focused on increasing vehicle production and capacity, improving and developing battery technology, improving FSD capabilities, improving vehicle affordability and efficiency, and expanding Tesla's global infrastructure.
In 2021, Tesla deployed 3.99GWh of energy storage products and 345 MW of solar systems. Tesla is currently focused on increasing the production of energy storage products, improving Tesla's solar roof installation capacity and efficiency, and increasing market share in retrofitted and newly built solar systems.
In 2021, Tesla confirmed total revenue of $53.82 billion, up 71% from the previous year. Tesla continues to ramp up production, build new manufacturing capabilities and expand Tesla's business to increase delivery and deployment of Tesla products and further increase revenue.
In 2021, Tesla's net profit attributable to common shareholders was $5.52 billion, a favorable change of $4.80 billion compared to the previous year. Tesla will continue to focus on improving profitability by improving production and operational efficiency.
Tesla's cash and cash equivalents were $17.58 billion at the end of 2021, $1.81 billion less than at the end of 2020. Tesla's cash flow from operating activities in 2021 was $11.50 billion, an increase of $5.55 billion from $5.94 billion in 2020, with capital expenditures of $6.48 billion in 2021 compared to $3.16 billion in 2020. Continued growth has allowed Tesla's business to fund itself overall, but Tesla will continue to invest in some capital-intensive projects for some time to come.
II. Overview
Tesla designs, develops, manufactures, sells and leases high-performance all-electric vehicles as well as energy production and storage systems, and provides services related to Tesla's products. Tesla typically sells Tesla products directly to customers, including through Tesla's website and retail stores. Tesla also continues to develop customer-facing infrastructure through a global network of automotive service centers, mobility service technicians, body repair shops, booster stations, and destination chargers to accelerate widespread adoption of Tesla products. Tesla emphasizes performance, attractive styling, and user and employee safety when designing and manufacturing products, and continues to develop fully autonomous driving technology to improve safety. Tesla is also working to reduce the cost of ownership for its customers through continuous efforts to reduce manufacturing costs and provide financial and other services for Tesla products. Tesla's mission is to accelerate the world's move toward sustainable energy, engineering expertise, vertically integrated business models, and a focus on user experience that sets Tesla apart from other companies.
Tesla operates in 2 divisions: (i) Automotive and (ii) Energy Production and Storage. The automotive segment includes the design, development, manufacture, sale and leasing of electric vehicles and the sale of automotive regulatory credits. In addition, the Automotive segment includes services and others, including non-warranty aftermarket vehicle services, used car sales, retail merchandise, sales to third-party customers by subsidiaries acquired by Tesla, and vehicle insurance revenue. The Energy Production and Storage segment includes the design, manufacture, installation, sale and rental of solar power generation and energy storage products, as well as related services and sales of solar energy systems.
3. Products and Services
Car
Model 3
The Model 3 is a four-door midsize sedan. Tesla currently produces the Model 3 at the Fremont plant and the Shanghai Gigafactory.
Model Y
The Model Y is a compact sport utility vehicle ("SUV") based on the Model 3 platform that can accommodate up to 7 adults. Tesla currently produces the Model Y at the Fremont plant and the Shanghai Gigafactory.
Model S和Model X
The Model S is a four-door full-size sedan and the Model X is a medium-sized SUV that can accommodate up to 7 adults. The Model S and Model X have the highest performance features and longest range Tesla offers in sedans and SUVs, respectively, and Tesla produces both models at the Fremont factory. In 2021, Tesla began delivering new versions of the Model S and Model X, which offer higher performance and range.
Future consumer and commercial electric vehicles
Tesla also announced several planned electric vehicles to tackle more of the car market, including a dedicated consumer electric vehicle in Cybertruck and a new Tesla Roadster as well as commercial electric vehicles in Tesla Semi. Tesla plans to continue to take advantage of Tesla's proprietary fully automated driving ("FSD"), batteries and other technological developments.
Energy production and storage
Energy storage products
Powerwall and Megapack are Tesla's lithium-ion battery energy storage products. Powerwall is designed to store energy in homes or small commercial facilities. Megapack is an energy storage solution for commercial, industrial, utility, and energy production customers, multiple of which can be combined to form larger gigawatt hours ("GWh") or larger capacity units.
Tesla also continues to develop software features for remotely controlling and scheduling Tesla's energy storage systems in a wide range of markets and applications, including through Tesla's real-time energy control and optimization platform.
Solar products
Tesla sells modified solar systems to customers and channel partners and makes them available through electricity purchase agreements ("PPAs"). Tesla buys most of the components used to retrofit solar systems from multiple sources to ensure competitive prices and ample supply. Tesla also designs and manufactures certain components for Tesla's solar products.
Tesla sells solar roofs that combine high-quality glass roof tiles with energy generation directly to customers as well as through channel customers. Tesla continues to improve its installation capacity and efficiency, including by working with real estate developers and builders to develop new homes.
Fourth, technology
Batteries and powertrain
Tesla's core vehicle technology capabilities include powertrain engineering and manufacturing, as well as Tesla's ability to design vehicles that take advantage of the unique strengths of electric powertrains. Tesla has designed its proprietary powertrain system to be adaptable, efficient, reliable, and cost-effective, while withstanding the rigors of the automotive environment. Tesla offers dual-motor powertrain vehicles, two electric motors in all-wheel drive configurations to maximize traction and performance, and vehicle powertrain technology with three electric motors to further improve the performance of some versions of the Model S and Model X.
Among other things, Tesla maintains extensive testing and R&D capabilities for batteries, battery packs and systems, and has established a broad body of knowledge on the chemical types and performance characteristics of lithium-ion batteries. In order to provide Tesla's products with more batteries with higher energy density at a lower cost, Tesla is currently using Tesla's expertise to develop a new proprietary lithium-ion battery and improve the manufacturing process.
Vehicle control and infotainment software
The performance and safety systems of Tesla vehicles and their battery packs require sophisticated control software. The control systems in Tesla vehicles optimize performance, customize vehicle behavior, manage charging, and control all infotainment functions. Tesla has developed almost all of this software in-house, including most of the user interface, and regularly updates Tesla's vehicle software with over-the-air updates.
Autonomous driving development
Tesla has expertise in developing technologies, systems, and software to support self-driving cars that primarily use vision-based sensors. Tesla's FSD computers run Tesla's neural networks in Tesla's vehicles, and Tesla is also developing additional computer hardware to better enable the vast amounts of field data captured by Tesla's vehicles to continuously train and improve these neural networks to achieve actual performance.
Currently, Tesla offers certain advanced driver assistance systems for Tesla's vehicles under the Autopilot and FSD options. Although currently the driver is ultimately responsible for controlling the vehicle, Tesla's system offers safety and convenience features that can free the driver from the most tedious and potentially dangerous aspects of road travel, just like the one used by airplane pilots when conditions permit. As with other vehicle systems, Tesla has improved these features in its vehicles over time by over-the-air updates.
Tesla intends to build an autonomous Tesla ride-hailing network in the future, and Tesla expects Tesla to reach a new customer base even as transportation methods continue to evolve.
Tesla leverages many of the component-level technologies in vehicles in its energy storage products. By taking a modular approach to designing battery systems, Tesla can optimize the manufacturing capacity of energy storage products. In addition, Tesla's expertise in power electronics enables Tesla's battery systems to interconnect with the grid while providing a rapid response system for power injection and absorption. Tesla has also developed software to remotely control and schedule Tesla's energy storage systems.
Solar energy systems
Tesla has iterated over and over to design a solar roof to combine aesthetics and durability with power generation. Tesla's own solar inverter helps improve the efficiency of solar products, which also uses Tesla's power electronics technology. Tesla designed both products to integrate with Powerwall.
5. Design and engineering
Tesla has built important in-house capabilities in the design and test engineering of electric vehicles and their components and systems. Tesla's team has core competencies in computer-aided design as well as durability, strength, and crash test simulations, reducing product development time for new models. In addition, Tesla's team has expertise in selecting and using a range of materials for Tesla's vehicles, balancing performance, cost and durability in a way that best suits the target demographic and utility of Tesla vehicles. Tesla has also leveraged Tesla's capabilities to achieve complex engineering feats in stamping, casting, and thermal systems, and is currently developing designs that integrate batteries directly with the body structure, eliminating the need for separate battery packs to optimize manufacturability and weight.
Tesla is also expanding Tesla's manufacturing operations globally, while taking action to localize Tesla's vehicle design and production to meet the needs of specific markets, including factory optimization for specific countries and for local labor. As Tesla's capabilities improve, especially in the areas of automation, mold making, and production line construction, Tesla has also made great strides in modeling simulations of these capabilities before construction.
Tesla's expertise in electrical, mechanical, civil and software engineering enables Tesla to design and manufacture Tesla's energy production and storage products and components. Tesla also leverages Tesla's design and engineering expertise to customize solutions for customers, including Tesla's energy storage products, solar systems, and/or solar roofs, to meet their specific needs. Tesla has developed software that simplifies and speeds up the design process, as well as mounting hardware that facilitates the installation of solar panels.