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On Wednesday night, Tesla reported their 4th quarter and full-year numbers. Tesla is the most actively-traded stock in history, so it always stirs excitement. As long-term holders of Tesla shares, we prefer to look at the trends in the full-year numbers.
2021 was a great year for Tesla. They grew production by 83% to 930 422 vehicles. Amazingly they made $5.5 billion of profits in the year and had free cash flows of $5 billion, even after spending $ 6.5 billion on new factories.
Car factories in Berlin and Austin are about to come online, which will help them to achieve their 50% per annum annual growth target. Given the supply issues everyone had last year, this was an amazing achievement. Another 50% growth would mean 1.4 million vehicles delivered in 2022.
Tesla's sales and profits have caught up with its share price. It's now a highly-profitable business with first-mover advantage, in an industry scrambling to meet the demands of billions of prospective electric car owners. On top of that, it has some very exciting "side hustles" in energy, mobility, robotics and self-driving cars. We are long term buyers and owners of this stock.
