Tesla’s Q4 2020 profitable

Tesla is ahead on revenue after producing its sixth consecutive profitable quarter but missed meeting its earnings target in its newly released report on fourth quarter earnings last year.

Recapping on 2020, Tesla chief executive Elon Musk says it was a defining year for Tesla in a challenging year affected by COVID, especially in producing and delivering about 500,000 EVs.       

It expects a 50% annual average delivery growth and will begin producing it Model Y at new plants in Texas and Germany this year using its own new battery cells, CNBC reports.

Updated Model S and X vehicles are also about to start production.

Tesla reported positive free cash flow for 2020 of US$2.79 billion, more than double that for the previous year.

Capital expenditures hit US$1.15 billion for the period ending December 31 last year, while gross margins reached 19.2% in the fourth quarter of 2020.

Automotive revenue grew to US$9.31b in Q4, revenue from energy generation and storage reached US$752m, and services and other revenue reached $678m.

Once Tesla’s 4860 battery cell gets into production the Semi electric truck (expected to be among the first to achieve autonomy) will come and the company also plans to produce an electric van, Musk says.

Cybertruck (electric ute) development is still on track for an expected launch this year.

Tesla is also reported to be developing its app to improve services.

Musk reckons Tesla will become a market leader in solar, although there’s still considerable work to be done on solar and also stationary energy storage.