Quarterly conference and refresh Model S and Model X - Tesla / Q4 2020

Tesla unsurprisingly publishes its (unaudited) results for the last quarter of the turbulent year 2020. These results are impressive and have some nice surprises in store! Here we go:

Finance section

Tesla’s revenues are growing in this Q4 of 2020, nearly $9,314 million. This is a 46% increase over Q4 2019 (YoY = year-over-year) and an increase of nearly $1,703 million over the previous quarter

The gross profit margin remains fairly stable compared to the previous quarter and increases by 49% compared to Q4 2019. This gross margin represents sales less the cost of manufacturing the products.

The operating margin is the ratio of operating profit to sales. This ratio indicates the economic performance before taking into account the financial result, taxes and exceptional events.(Source Wikipedia). Tesla has seen this margin decline significantly in the last quarter, partly explained by the payment of a $267 million equity award to Elon Musk in Q4 2020.(Stock-based compensation = SBC).

In addition, the company is improving its “CashFlow”, also known as liquidity, by almost 209% compared to Q4 2019 and almost 13,000 million more than in the previous quarter

In summary, over the last quarter revenues increased by almost 46% compared to last year. Deliveries followed and prices fell by almost 11% on average across all ranges and regions

Part Production

In Fremont

Tesla has upgraded its Fremont factory for the production of Tesla Model S and Tesla Model X. These changes concern the engine, batteries, with a new interior and a new exterior. Production will resume in the first quarter of this year to return to cruising speed as quickly as possible. Efforts are also put on the production of the Model Y to increase the volume and improve the manufacturing with this idea of manufacturing the chassis in one piece.

In Shangai

Shanghai has literally proven itself with a production capacity that has exceeded 250,000 vehicles per year. Production of the Model Y started at the end of the year and will reach the same rate as the Model 3. In addition, at the end of the year, the plant shipped Tesla Model 3s to Europe and Asia-Pacific in addition to the shipments from the Fremont plant.

In Berlin

Production in Berlin will be the key to their strategy, the European market is constantly growing and the factory will be able to relieve and deliver massively to the entire European market just as Shanghai has done in the past. Construction is still on schedule and the manufacturing machinery is starting to be installed

Technology and FSD part

Autopilot

The BETA version of the SDF in town is already published and more and more updates are being sent. Every journey made with it improves the software and allows the development of the technology

Software

As every year Tesla released its annual update in December with developments such as games, sounds (US only), and improved visualization. On the other hand announced as part 1/2 by Elon Musk, we still don’t have any news about this part 2/2.

Battery and motor

After 8 years of loyal service Tesla has completely redesigned the battery module of the Tesla Model S and Model X. With the addition of the Tesla Model 3 and Model Y motors but also with the addition of the heat pump to improve the architecture and performance. In addition, Tesla is renaming its Performance versions of the Model S and Model X to call them “PLAID”. These are therefore twin-engine versions with a 0 to 100km/h in less than 2 seconds, faster than a Bugatti Chiron

Objectives and strategic changes for Tesla

Setting up dedicated teams for each project for more efficient and longer term management
Targets to increase the number of deliveries by 50% every year from 2021 onwards.
The company’s liquidity is now sufficient to meet the roadmap and expansion plans.
Objective to improve the operating margin every year.
Objective to deliver Tesla Model Y from the Berlin and Texas plant in 2021 with delivery of Semi in 2021 as well.

Summary

Tesla has once again had an outstanding year and has contradicted a lot of bad language. The speed of the company’s evolution and expansion is impressive. The factories in Texas and Berlin are advancing very quickly and will already be delivering their vehicles in 2021. In the meantime it’s quite a pity not to have information on several subjects such as the V11 update and the Cybertruck. We will surely have to wait a little longer for more precise information

The Chinese market for Tesla is an incredible opportunity that they have seized perfectly. Indeed the price drop on the Model Y has allowed a launch with a media buzz like Tesla likes them

Europe is for the moment a little on hold on a number of subjects. The Berlin factory will move forward and will soon set the tone for the prices of the Model Y Made In Germany. In addition, there is no information on the CyberTruck in Europe or even on design adjustments

Finally “ONE MORE THING” the refresh of the Tesla Model S and Model X which we let you admire …