Tesla banks record US$2.3b profit, sales increasing

January 27, 2022February 12, 2022 Toby Hagon 1564 Views Tesla

The world’s most valuable car maker has posted another record profit with the release of its fourth-quarter 2021 earnings.

Tesla’s investor presentation reported a US$2.321 billion profit, which is about $3.3 billion in Australia.

The profit was bolstered by a 32 percent quarter-on-quarter increase in revenue for selling vehicles, from US$12.057b to $15.967b off the back of record sales of 308,650 vehicles globally over the final three months of 2021, an increase of 28 percent.

Profitability per vehicle sold also increased to around US$7500, although Tesla also earns revenue from home battery storage and subscription services.

Earnings per share rose 28 percent to US$1.86. While it’s an impressive increase, Tesla’s stratospheric share price currently sits at US$937.41 (with a market capitalisation of almost US$1 trillion), making for a modest 2 percent return on investment.

Tesla Model 3 and Model Y — Tesla Model 3 (left) and the soon-to-arrive in Australia Model Y make up about 96 percent of the EV maker’s sales

While Tesla fell short of its target of selling one million vehicles in 2021 – a milestone certain to be passed in 2022 – the company still sold 936,222 vehicle during the year and manufactured 930,422 cars.

While sales of the larger Model S and Model X continue to grow, they still make up only about 4 percent of overall sales, with the Model 3 and soon-to-arrive-in-Australia Model Y making up the bulk of the brand’s volume.