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Tesla Stock Breakdown: By The Numbers, How Does Tesla Make Money In 2022? – Forbes

An aerial view of Tesla Shanghai Gigafactory.

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Key Takeaways:

There’s more to Tesla than just cars—this EV manufacturer has been bringing in money from regulatory credits and…….

An aerial view of Tesla Shanghai Gigafactory.

Getty Images

Key Takeaways:

  • There’s more to Tesla than just cars—this EV manufacturer has been bringing in money from regulatory credits and energy storage.
  • Tesla struggled with production issues and factory closures during the lockdowns. However, according to the most recent earnings report, Gigafactory Berlin hit the milestone of 1,000 vehicles produced in a single week.
  • Tesla ended 2021 with a net income of $5.51 billion (a 665% increase from 2020).

Aside from the constant swirl of buzz that surrounds Tesla’s founder, the recent stock split and Inflation Reduction Act have drawn more eyes to the electric vehicle (EV) maker than normal, which is saying something – something substantive for a change. Since we have already taken a deep dive into the financials behind the Tesla stock split, we wanted to look at the company’s financials and revenue streams to see how the actual business, the fundamentals of the operation, have been performing.

While everyone associates Tesla with electric vehicles, it’s well-known that the company also has other revenue streams that have kept it afloat while struggling with production issues and the inability to turn a profit for most of its 19 year history.

Does Tesla Make Money?

It took Tesla 17 years to turn a profit when it announced that 2020 was the first full year of profitability in the company’s history. While the company generates substantial revenue from automotive sales and regulatory credits, it took some time to profit due to production costs and supply chain issues.

Until recently, the car factories in Texas and Berlin were losing billions of dollars due to a shortage of batteries and other supply chain issues in China (pandemic restrictions actually closed the factories temporarily).

Revenue

When looking at any company, it’s essential to consider the different revenue streams and the expenses associated with them. While most of Tesla’s revenue comes from automotive sales, the energy side of the business is making meaningful progress.

What really kept Tesla afloat were emissions credits, namely the sale of these credits. Since Tesla manufacturers electric vehicles, it receives carbon credits from various clean energy government incentives. Tesla then turns around and sells these credits to other automakers in the field, like General Motors for instance. Critics are quick to point out that these competing automakers will eventually figure out how to create electric vehicles without the support of Tesla’s regulatory credits.

It’s worth noting that in 2020 the company was able …….

Source: https://www.forbes.com/sites/qai/2022/09/08/tesla-stock-breakdown-by-the-numbers-how-does-tesla-make-money-in-2022/

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