Tesla’s revenue: 5 must-see metrics point to strong execution

After an incredible year 2020 for You’re here (NASDAQ: TSLA) stock, expectations were high in the company’s fourth quarter earnings report on Wednesday afternoon. Investors in the growth stock were looking for another quarter of significant earnings and signs that rapid sales growth may persist into 2021 and beyond.

The automaker has arguably delivered. Free cash flow has skyrocketed, guided management to make vehicle deliveries grow even faster in 2021 than in 2020, and the company unveiled an all-new Model S interior.

“This past year has been transformative for Tesla,” management said in the company’s fourth quarter update. “Despite unforeseen global challenges, we have outperformed many trends seen elsewhere in the industry by dramatically increasing volumes, profitability and cash generation.”

Here’s a look at five of the quarter’s most important metrics.

1. 46% revenue growth

Fueled primarily by a 61% year-over-year increase in vehicle deliveries, Tesla’s fourth-quarter revenue jumped 46%, helping the company to end a strong year. This brought annual revenue to $ 31.5 billion, up from $ 24.6 billion in 2019.

2. Free cash flow of $ 1.9 billion

Tesla’s free cash flow (cash from operations minus capital expenses) was $ 1.9 billion, up from $ 1 billion the previous year. The company has “sufficient liquidity” to fund its “product roadmap, long-term capacity expansion plans and other expenses,” management said.

3. Installed energy storage capacity of 1,584 megawatt hours

Tesla’s energy storage business has seen strong growth recently – and the fourth quarter was no exception. Quarterly energy storage facilities amounted to 1,584 megawatt hours, up from 530 megawatt hours in the quarter last year. The total number of megawatt-hour energy storage deployments in 2020 was over 3 gigawatt hours, up 83% year-over-year.

4. An operating margin of 5.4%

Tesla’s fourth-quarter operating margin of 5.4% put its 2020 total operating margin at 6.3%, down from 0.3% in 2019. Management said it expects its margin operational continues to grow, eventually reaching “peak levels”.

5. An expected increase in vehicle deliveries of over 50%

Tesla’s annual growth of 36% in vehicle deliveries in 2020 was impressive. But 2021 will be even more remarkable, according to management projections. In the fourth quarter update, Tesla said it expects vehicle deliveries to increase by more than 50% year over year. This would bring the total 2021 deliveries to over 750,000, up from around 500,000 deliveries in 2020.

As if these steps weren’t enough to get Tesla shareholders excited, Tesla also reiterated significant progress on its product plans. These include the start of production of the Model Y at its factories in Berlin and Texas, and the launch of Tesla Semi – both this year – as well as an all-new interior design for Tesla’s Model S sedan.