Tesla reports $24.3B revenue in the fourth quarter, beating Street estimates
Tesla Inc reported $24.3 billion in revenue for the fourth quarter of 2020 on Wednesday, beating analysts’ expectations of $23.3 billion.
The electric carmaker said it delivered 180,570 vehicles in the quarter, including 159,20 Model 3 and Model Y cars.
Tesla said it expects to deliver 50% more cars in 2021 than it did last year.
The company’s shares were up about 5% in premarket trading on Wednesday.
Get full technical analysis of Tesla from Linear analysis of price volatility and open interest
Tesla delivered 180,570 vehicles and said it expects to deliver 50% more cars this year. The electric carmaker reported $24.3 billion in revenue for the fourth quarter of 2020 on Wednesday, beating analysts’ expectations of $23.3 billion.
Like other auto companies, Tesla benefited from a shift to electric vehicles due to increasing awareness of climate change and federal and state policies that cite climate change as a reason to promote electric vehicles.
Tesla’s revenues increased by 42.8 percent on an annual basis to $24.3 billion as customers increasingly purchased higher-priced vehicles. The majority of this revenue came from the sale of 159,020 Model 3 and Model Y cars.
The Tesla Model Y is the company’s newest vehicle and is priced between $50,000 and $60,000. The SUV, which was unveiled in March 2019, competes with the Audi e-tron, Jaguar I-Pace and Mercedes-Benz EQC.
The company’s profits have also been helped by the sale of regulatory credits, which other automakers can purchase to meet emissions standards.
Tesla’s net income rose to $721 million, or $0.80 per share, in the fourth quarter from $146 million, or $0.15 per share, a year earlier.
Adjusted earnings were $2.14 per share, compared with analysts’ estimates of $0.76 per share, according to Refinitiv data.
Revenue rose 42.8 percent to $24.35 billion, compared with analysts’ expectations of $23.31 billion.
Tesla said it expects to deliver 50% more cars in 2021 than it did last year, thanks in part to the ramp-up of production at its plant in Shanghai and its new plant in Berlin.
We continue to believe that the fundamental demand for Model S and Model X remains strong and we are working hard to increase production of these products to meet that demand, Tesla said in a statement.
Tesla is also working on a new vehicle, the Model 3, which is expected to be launched in 2022. The company said it will be produced at its new plant in Berlin.
The company’s shares were up about 5% in premarket trading on Wednesday.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.