Tesla Revenue Up 65% -- Beating Wall Street Estimates by Over $1 Billion

In its most recent quarterly earnings announcement, the electric vehicle maker reported that its revenue rose 65% year over year in the fourth quarter. The number beat analyst expectations by more than $1 billion. In this episode of 3 Minute Stocks, host Brian Feroldi talks about the recent impressive facts and figures of this investor favorite.

It is always easy to cover a company in three minutes. Going into the quarter, we knew a lot of this, but total production was up 70%. Model 3 and Model Y continue to sell like hotcakes. Model S and Model X are moving in the right direction despite rounding errors. The company just refreshed these. It took deliveries down to zero earlier this year and started to ramp them up again. At the end of the quarter, the number of leases that are active continues to grow, and the global vehicle inventory supply is down to just four days. There were four days of global inventory supply. A lot of vehicles were pushed out at the end of the year. The solar totals continued to lag. The chip shortage and the company's focus on Model 3 and Model Y are just some of the reasons the company is still doing well. The story gets better financially. Revenue was up by more than half a billion. Despite the fact that Wall Street knew the production and delivery numbers ahead of time, that beats Wall Street estimates by more than $1 billion. The consolidated gross margin was 27.4% companywide, operating margin was 14.7%, and non- GAAP margin was 13.1%. Free cash flow during the quarter was over 2 billion and net income was over 2 billion. That is the strong operating leverage kicking in. The balance sheet of the company is in great shape, with $17.5 billion in cash and $6.4 billion in debt. Paying off debt is a priority for the company. The big news for investors is that the Cybertruck, the Semi, and the Roadster are all being delayed. Why? The company said that they could launch the Model 3 and Model Y this year, but that it would cause them to deliver less overall vehicles. The company believes that full self-driving will become the most important profit center over time. The company has a major focus on the robot, called Optimus. Musk thinks that the robot business will dwarf the company's car and FSD business. Take that for what it is worth. The company wants to grow annual deliveries by at least 50%. It said that it could get 50% growth from its existing Gigafactories. Texas and Berlin are coming online this year. It wants to have insurance available to 80% of drivers by the end of the year. Demand is crazy strong, financials are really good, but the chip shortage is bad, and full self-driving is the company's top priority.