The Tesla share price has been under pressure for most of this month, having fallen below its $1trn in market cap it has struggled to rally from the three month lows we saw earlier this week.

Last night’s Q4 numbers built on the decent numbers seen in Q3. The company posted a record annual profit of $5.5bn but warned that supply chain problems were likely to be a headwind moving into 2022, and which is likely to see the shares slide back when US markets open later today.

Q4 profits came in at $2.54c a share, on revenues of $17.72bn, beating expectations on both.

Automotive margins remained steady, coming in at 30.6%, with the company delivering 308,600 cars, during the quarter, most of which were Model 3 and Model Y, accounting for almost 297k.

The supply chain constraints have meant that existing plants aren’t operating at full capacity and are likely to continue to do so for the foreseeable future. The carmaker says it is still intent on seeing an annual growth rate for vehicle deliveries of 50%.

On an annual basis Tesla produced a total of 936,172 vehicles in 2021, with the hope that 2022 will push that total strongly above the 1m mark, to over 1.3m.

The company plans to open its new plant in Austin Texas, in order to build many more Model Y cars, while the plant in Germany is also expected to open later this year. Both are still in “equipment test” phase” which suggests they still remain some way from being full production ready, and that is a concern if they are able to deliver on their growth targets.

On the Cybertruck project, production here appears to have been pushed back into 2023, with Tesla saying that no new models will be produced this year, and that the focus will remain on its current range of vehicles.

With competition in this sector set to become much more intense over the next few years, with the arrival of new competition in the form of Rivian, as well as having to cope with the likes of Ford, GM and Volkswagen looking to ramp up their electric vehicle offerings, Tesla will have to work much harder to maintain its rich valuation even if it continues to generate the record profits that it has been doing.  

Let's not forget Tesla is still worth more than the likes of Volkswagen, Toyota and Ford combined, and still doesn't sell anywhere near as many cars.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.5% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD recovers above 1.0400, looks to post weekly gains

EUR/USD recovers above 1.0400, looks to post weekly gains

EUR/USD regained its traction after dropping toward 1.0350 in the early American session and climbed above 1.0400. Trading conditions remain thin on Black Friday and the pair remains on track to end the week in positive territory.

EUR/USD News

GBP/USD recovers toward 1.2100 as US Dollar loses strength

GBP/USD recovers toward 1.2100 as US Dollar loses strength

GBP/USD managed to stage a recovery toward 1.2100 in the American session on Friday and now looks to register gains for the third straight week. The US Dollar struggles to preserve its strength as markets remain subdued on Black Friday. 

GBPUSD News

Gold steadies near $1,750 as US yields retreat

Gold steadies near $1,750 as US yields retreat

Gold price continues to move sideways at around $1,750 heading into the weekend. The benchmark 10-year US Treasury bond yield retreated from the daily high it touched above 3.75% earlier in the day, allowing XAU/USD to erase a portion of its daily losses.

Gold News

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin price is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read more

FX next week and yield curve inversions

FX next week and yield curve inversions

Since the Fed's last raise November 3, Fed Funds rate opens and closes at 3.83. The Fed Funds rate once traded freely on its own with highs and lows as any financial instrument. In 2000, Central banks implemented meetings every 6 weeks.

Read more

Forex MAJORS

Cryptocurrencies

Signatures