Tesla tops earnings estimates, stock falls after hours

Yahoo Finance's Pras Subramanian breaks down Tesla earnings and how supply chain challenges are striking the electric vehicle company.

Video Transcript

- And we want to pause this conversation really quickly and head over to Yahoo Finance's Pras Subramanian, who's standing by with earnings results from Tesla. Pras, break this down for us.

PRAS SUBRAMANIAN: Yeah, Emily. Stock lower here. I'm going to go through some of these numbers here. A beat on both the top and bottom line revenue coming in at $17.7 billion, topping estimates $16.64 billion. That's a record right there. Q4 adjusted EPS, $2.54. Topping estimate is $2.37. That highly watched GAAP net income, Emily, that you were talking about before, a record $2.3 billion. Third time it's past $1 billion in GAAP net income for the quarter. So another big beat there.

Automotive gross margin, above 30.6%. Again, beating estimates. And they have $17.6 billion cash on-hand and cash and cash equivalents. No change to deliveries. They also see capacity and volume staying at 50% compound annual growth rate. That's what they've been saying for quite a few quarters now. We also don't see a change in annual capacity at the three plants-- California, Fremont factory 600,000, Shanghai at 450,000.

I want to note one thing in their product outlook at the end of their shareholder deck, they mentioned this could be knocking the stock a little bit. The pace of production ramps in Austin and Berlin will be influenced by the successful introduction of many new products, manufactured technologies in new locations, ongoing supply chain-related challenges, regional permitting. We are making progress on the industrialization of Cybertruck, which is currently planned for Austin production subsequent to Model Y. So we don't know if that's going to be end of this year or even possibly the beginning of 2023.

On the call, Elon Musk will return to the call after a few quarters off. He's going to talk about a product roadmap. So maybe, we'll get the update on that. In addition to any new news on that Cybertruck date, we're also going to hear about FSD and investigation with NHTSA, anything new on that front. And also, lastly, many investors and also customers are asking about customer service improvements. Are they going to invest in those areas? Tesla sold so many trucks and cars, SUVs and cars over the past year. People are having problems servicing them. So that's another issue that's a paramount concern on the call later today.

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