Tesla banks record US$2.3b profit, sales increasing

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.

READ MORE: Tesla smashes delivery records; more than one million sales expected in 2022

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.

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.