Insights

Tesla earnings: 5 must-see metrics highlight strong execution

A new Model S design, soaring free cash flow, and big guidance: Here’s what you need to know.
The post Tesla earnings: 5 must-see metrics highlight strong execution appeared first on The Motley Fool Australia. –

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

tesla shares represented by interior of Tesla model s electric vehicle

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Following an incredible 2020 for Tesla Inc (NASDAQ: TSLA) stock, expectations were high going into the company’s fourth-quarter earnings report Wednesday afternoon. Investors in the growth stock were looking for another quarter of meaningful profits and signs that rapid sales growth can persist in 2021 and beyond.

The automaker arguably delivered. Free cash flow soared, management guided for vehicle deliveries to grow even faster in 2021 than they did in 2020, and the company unveiled an all-new Model S interior.

“This past year was transformative for Tesla,” management said in the company’s fourth-quarter update. “Despite unforeseen global challenges, we outpaced many trends seen elsewhere in the industry as we significantly increased volumes, profitability and cash generation.”

Here’s a close look at five of the most important metrics from the quarter.

1. Revenue growth of 46%

Fueled primarily by a 61% year-over-year increase in vehicle deliveries, Tesla’s fourth-quarter revenue jumped 46%, helping the company cap off a strong year. This put full-year revenue at $31.5 billion, up from $24.6 billion in 2019.

2. Free cash flow of $1.9 billion

Tesla’s free cash flow (cash provided by operations less capital expenditures) was $1.9 billion, up from $1 billion in the year-ago period. The company has “sufficient liquidity” to fund its “product roadmap, long-term capacity expansion plans and other expenses,” management said.

3. Installed energy storage capacity of 1,584 megawatt-hours

Tesla’s energy storage business has been growing sharply recently — and Q4 was no exception. Quarterly energy storage installations amounted to 1,584 megawatt-hours, up from 530 megawatt-hours in the year-ago quarter. Total 2020 megawatt-hour energy storage deployments were more than 3 gigawatt-hours, up 83% year over year.

4. An operating margin of 5.4%

Tesla’s fourth-quarter operating margin of 5.4% put its total 2020 operating margin at 6.3%, up from 0.3% in 2019. Management said it expects its operating margin to continue expanding, eventually reaching “industry-leading levels.”

5. An expected increase in vehicle deliveries of more than 50%

Tesla’s year-over-year growth of 36% in vehicle deliveries in 2020 was impressive. But 2021 will be even more notable, according to management’s projections. In the fourth-quarter update, Tesla said it expects vehicle deliveries to increase more than 50% year over year. This would put total 2021 deliveries at more than 750,000 — up from about 500,000 deliveries in 2020.

As if these metrics weren’t enough for Tesla shareholders to get excited about, Tesla also reiterated some important progress on its product plans. These include starting Model Y production at its Berlin and Texas factories, and launching Tesla Semi — both this year — along with an all-new interior design for Tesla’s Model S sedan.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Tesla earnings: 5 must-see metrics highlight strong execution appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!