Tesla (NASDAQ: TSLA) announced its 2020 Q4 earning results on January 27th, 2021. As a result, total revenues, total gross profit and operating income increased by 46%, 49% and 44%, respectively (3 months, YoY). The annual total GAAP gross margin and operating margin increased by 447bp and 660bp, respectively (YoY) despite the quarterly total GAAP gross margin and operating margin decreased by 43bp and 39bp, respectively (QoQ). The decrease of quarterly profitability is partially due to incurrence of SBC expense.
According to Tesla, EV production in a mega factory in Shanghai started in December 2020, which dramatically increased the EV supply in China. Meanwhile, Tesla is constructing mega factories in Berlin and Texas, which enable significant increase of the supply in Europe and the United States. These mega factories are expected to start their operation by the end of 2021, which may make Tesla’s production capacity and profitability be drastically improved.
In addition, Tesla have redesigned its battery while trying to enable its in-house production, which may lead to further reductions in production costs and improvements in driving performance.
Watanabe & Brothers ’ Investment will continuously invest in Tesla from long-term perspectives.
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