'An EV Cash Machine': Tesla (TSLA) Beats on Revenue and Profit But Supply Chain Warning Sends Shares Lower, Analysts Positive and Raise Numbers

January 27, 2022 5:44 AM EST
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Shares of Tesla (NASDAQ: TSLA) are down 1% in pre-market after a wild ride in the after-market trading, in response to Q4 results.

Tesla reported adjusted earnings per share of $2.52 in the fourth quarter, beating the analysts’ expectations of $2.36 per share, according to Refinitiv. The carmaker generated $17.72 billion in revenue during the period, compared to the $16.57 consensus, marking revenue growth of 65% year-over-year.

Auto gross margin was 30.6% to top the analyst consensus of 29.9%. Net income stood at $2.32 billion, up roughly 760%, while gross margin was 27.4%, more than 26.6% from the previous quarter. Automotive revenue was up 71% at $15.97 billion, according to the earnings report.

On the other hand, energy generation and storage reported revenue of $688 million, far below the analysts’ expectations of $815.1 million and down 8% from the same period last year.

Still, Tesla shares fell after the EV giant voiced its concerns about persisting supply chain bottlenecks throughout 2022.

“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,” Tesla said in a shareholder deck.

Tesla stock price then recovered in after-market trading during Elon Musk’s call, before moving lower once again to now trade 0.9% in the red a few hours before the New York opens. Shares reacted positively to Musk’s comment ​​that Tesla will be “comfortably above 50% growth” in 2022.”

Musk said Tesla doesn’t plan to introduce new models this year as it faces a major chip shortage.

Morgan Stanley analyst Adam Jonas said Tesla is an “EV cash machine and this with just 2 cars and 2 plants.” Jonas has a $1,300.00 per share price target on Overweight-rated Tesla stock.

“Tesla was already the most profitable major auto company in the world, but is now emerging as the most cash flow generative auto company in the world (pound for pound) as production costs may be in position to further gap down with the introduction of new plants and radically new manufacturing techniques,” Jonas wrote in a client note.

JPMorgan analyst Ryan Brinkman raised the price target on Tesla to $325.00 per share from $295.00 to reflect raised estimates.

“While Tesla’s product development roadmap may have disappointed customers having placed deposits for their Roadsters as far back as 2017 and their Cybertrucks as far back as 2019, there is no denying Tesla delivered for investors in 4Q,” Brinkman wrote in a client note.

“Our estimates rise as a consequence of now expecting +33% higher deliveries y/y in 2022 vs. earlier, and on and flow-through of 4Q’s stronger margin and cash conversion trend, partly offset by higher spending.”

Tesla stock price closed at $937.41 yesterday.

By Senad Karaahmetovic | [email protected]



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