Tesla Q4 and FY2020 Update

Tesla’s (NASDAQ:TSLA) fourth-quarter and full year earnings call comes on the heels of an impressive quarter that saw the electric car maker post $10.7 billion in revenue and $903 million non-GAAP net income. With these results, Tesla has now maintained its profitability for six consecutive quarters.
H I G H L I G H T S
Cash

— Operating cash flow less capex (free cash flow) of $2.8B in 2020
— $4.9B increase in our cash and cash equivalents in Q4 to $19.4B
— Free cash flow $1.9B in Q4

Profitability

— $721M GAAP net income; $2.5B non-GAAP net income in 2020
— $270M GAAP net income; $903M non-GAAP net income (ex-SBC*) in Q4
— $575M GAAP operating income; 5.4% operating margin in Q4
— SBC expense increased to $633M in Q4

S U M M A R Y
This past year was transformative for Tesla. Despite unforeseen global challenges, we outpaced many trends seen elsewhere in the industry as we significantly increased volumes, profitability and cash generation.

For the full year 2020, we achieved an industry-leading1 6.3% operating margin (despite an increase of SBC to $1.7B). Teams across our organization, including supply chain, manufacturing, logistics and delivery, rose to the occasion to ensure strong execution.

In addition, we continued to improve our products and make progress on our long-term roadmap.