Tesla, Inc

Tesla, Inc. (TSLA) Q4 2020 Earnings Call Transcript

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Tesla, Inc. (NASDAQ: TSLA) Q4 2020 earnings call dated Jan. 27, 2021

Corporate Participants:

Martin Viecha — Senior Director of Investor Relations

Elon Musk — Chief Executive Officer

Zachary Kirkhorn — Chief Financial Officer



Ladies and gentlemen, thank you for standing by, and welcome to Tesla’s Q4 2020 Financial Results and Q&A Webcast. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions]

I would now like to hand the conference over to your speaker, Mr. Martin Viecha, Senior Director of Investor Relations. Please go ahead, sir.

Martin Viecha — Senior Director of Investor Relations

Thank you, Sherry. And good afternoon, everyone. Welcome to Tesla’s fourth quarter 2020 Q&A webcast. I’m joined today by Elon Musk, Zachary Kirkhorn, and a number of other executives. Our Q4 results were announced at about 1:00 PM Pacific Time in the update deck we published at the same link as this webcast.

During this call, we will discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent filings with the SEC. During the question-and-answer portion of today’s call, please limit yourself to one question and one follow-up. Please press star one now if you like to join the question queue.

But before we jump into Q&A, Elon has some opening remarks. Elon?

Elon Musk — Chief Executive Officer

Thank you. So just to recap the year, 2020 was a defining year for us on many levels. Despite a challenging environment, we’ve reached an important milestone of producing and delivering 0.5 million cars. I’d just like to, once again, thank the people at Tesla for an incredible effort. We delivered almost as many cars last year as we produced in our entire history. So really an incredible growth rate and — despite a very challenging 2020. So my hat is off; it’s such an honor to work with such great people at Tesla.

So for the year — so we achieved free cash flow of nearly $2.8 billion after spending more than $3 billion on building new factories and other expenditures. We’ve reached industry-leading GAAP operating margin, envisioned [Phonetic] positive net income and record cash flow.

Regarding capacity expansion, while we focus on execution, we continue to build a lot of new capacity. We started producing the Model Y out of Fremont and almost reached full production speed. We ramped the Model 3 in Shanghai to more than 5,000 cars a week sustainably and Shanghai continues to grow rapidly. We introduced the heat pump to all our vehicles. We’ve ramped the single piece — we started and rails [Phonetic] ramped to volume production at the single piece castings for Model Y. This is where, for the first time in history, the entire rear third [Phonetic] skeleton on the car is being cast with a single piece in the largest and most advanced casting machine ever made.

We built a Model Y factory in China from start to finish in one year. We’re also building Giga Berlin and Giga Texas, which we expect to start production later this year. And lastly, we built a battery cell factory in the Bay Area. And this — even though it is a pilot plant, it is classy as — large enough that it would be in the — probably the top 10 battery cell factories on earth, despite being a pilot plant.

Regarding the new Model X, S and X, we are launching the — I’m super excited to announce that the new Model S and Model X Plaid are in production now and will be delivered in February. So we’ve been able to bring forward the Plaid Model S and X and Model S will be delivered in February and Model X a little later.

Credit: AlphaStreet

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