Tesla Q4 Earnings Beating Record Profit, But Shares Drop

Tesla stock dropped after the company reported better-than-expected earnings for Q4. But the automaker’s fourth-quarter results might not be good enough for investors.

Tesla reported earnings of $2.54 a share in the fourth quarter from $17.7 billion in sales Tesla reported earnings for Q4 after the close on Wednesday. Earnings per share came in at $2.54 versus the average estimate of $2.26. Revenue was $17.72 billion versus estimates for $16.35 billion.

Tesla stock is trading at $880 versus the regular session close at $938.72, a loss of 6%. Earnings (adjusted): $2.52 per share, vs. $2.36 per share expected by analysts. Revenue: $17.72 billion, vs. $16.57 billion expected by analysts.

Revenue rose 65% year over year in the quarter, while automotive revenue totaled $15.97 billion, up 71%, according to a statement.

Energy generation and storage revenue was $688 million, which was down 8% and below the StreetAccount consensus of $815.1 million. It was the lowest revenue for that division since the first quarter of 2021.

Net income, at $2.32 billion, was up some 760%, and Tesla said it had a 27.4% gross margin, compared with 26.6% in the previous quarter.

“Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through 2022,” the company said.

CEO Elon Musk alluded to the supply chain issues in a tweet Last November, writing, “Oh man, this year has been such a supply chain nightmare & it’s not over! I will provide an updated product roadmap on next earnings call.”

The report comes in the midst of the most important tech earnings season in years. The Nasdaq has suffered its worst January since 2008 as many investors have begun to sour on the promise of high-growth tech stocks.

In 2021, Tesla delivered 936,172 vehicles, an 87% increase versus 2020 when it reported its first annual profit on deliveries of 499,647. Its 2021 deliveries included 308,600 electric vehicles in the fourth quarter.