Tesla’s Net Income Up 665% YoY With $5.52 Billion in 2021

Tesla deployed 85 MW solar and 978 MWh of storage in Q4

January 28, 2022


Tesla recorded a revenue of $17.72 billion in the fourth quarter (Q4) of 2021, an increase of 29% compared to $13.76 billion in the previous quarter. The revenue contribution from energy generation and storage was $688 million, and the rest was from the company’s automotive business.

Tesla’s total gross profit for Q4 2021 was up 32%, with $4.85 billion compared to $3.66 billion in Q3 2021.

The Generally Accepted Accounting Principles (GAAP) net income in Q4 was $2.32 billion, a 43% rise compared to $1.62 billion in Q3 2021.

The company’s total revenue in 2021 was $53.82 billion, a growth of 71% compared to $31.53 billion in 2020.

In 2021, Tesla’s gross profit grew 105% to $13.60 billion from the $6.63 billion in 2020.

In 2021, Tesla logged a net income (GAAP) of $5.52 billion, a whopping 665% increase compared to $721 million in 2020.

Solar and Storage

The revenue from energy generation and storage in Q4 stood at $688 million. It was the lowest revenue for that division since Q1 2021.

In Q4 2021, Tesla deployed 85 MW solar, compared to 83 MW deployed in the previous quarter. The total solar deployed for 2021 stood at 345 MW, with a year-over-year (YoY) increase of 68% compared to 205 MW installed in 2020. Cash and loan purchases accounted for nearly all solar deployments. Rooftop solar installations nearly tripled YoY in 2021. The company is making further installation cost improvements to increase energy profitability.

Residential solarSource: Tesla

In Q4 2021, Tesla deployed 978 MWh of storage, compared to 1,295 MW in the previous quarter. The total energy storage deployed in 2021 stood at 3,992 MWh, a YoY increase of 32% compared to 3,022 MWh in 2020.

The increase in energy storage installations during the year was mainly driven by strong Megapack deployments. Even as demand remains substantially above capacity, supply has limited growth. Tesla is in the process of building a dedicated Megapack factory to address the growing demand.

Energy storageSource: Tesla

Although Tesla was able to handle the components shortage challenge better than the others in the industry, it predicts that the pressure on the global supply chain will continue throughout 2022. It plans to rely on its effective management of available components and boost manufacturing and repairing battery cells at its facilities.

Electric Vehicles (EVs)

The company’s revenue from automotive sales in 2021 was $47.23 billion, a YoY growth of 73% compared to $27.23 billion in 2020.

Tesla delivered 936,222 EVs in 2021, with Model 3 and Model Y alone selling 911,242 units.

The quarter saw the continuation of the challenges with global supply chain, transportation, labor, and manufacturing, limiting Tesla’s ability to run factories at full capacity, the company said in its announcement.

The company aims to increase its production by ramping production at new factories in Austin and Berlin and maximizing output from its established factories in Fremont and Shanghai. Full Self-Driving (FSD) software remains one of the primary focus areas to improve automobile safety alongside accelerating the transition towards sustainable energy.

In January 2021, Tesla had established an Indian subsidiary, ‘Tesla Indian Motors and Energy,’ in Bengaluru. The subsidiary has an authorized capital of ₹1.5 million (~$20,515) and a paid-up capital of ₹100,000 (~$1,366).

According to a report by Smart Electric Power Alliance (SEPA), the United States would have 10 million to 35 million electric vehicles on roads by 2030. This will generate around 100 TWh of new power demand annually.