Tesla Q4 2021 Earnings Call and the Long Road Ahead

Hello, I’m Gail Alfar, a Tesla owner in Austin, Texas. I love to share good vibes about Tesla, Giga Texas, Tesla China & Tesla Solar. I really do believe our future is bright! I recently rented a shared office space to start “What’s Up Tesla,” and a funny thing happened to me. Have you ever been locked out? I went into a secret room that was filled with beautiful art. The door locked behind me and I was forced to exit the area. Outside, the hallway was empty, except for a Pepsi someone had left sitting on the floor. Eventually a stranger came along and unlocked the door. “You need to get back in, there’s lots of work to do.” His words reminded me of why I am writing this blog. I have to do more to support the mission of Tesla and Elon Musk, as there is still a very long road ahead.

“While 2021 was a defining year for our company, we believe we are just at the very early stages of our journey. Thank you for being part of it.”  Tesla
Tesla Giga Texas (Source: Tesla Q4 and FY2021 Update)

October 7, 2021: Tesla Headquarters is officially Austin, Texas. Elon Musk announced this historic move at the Tesla 2021 Annual Meeting of Stockholders.

January 26, 2022: Tesla Q4 and Full Year 2021 Financial Results are a game-changer, revealing that making electric cars is actually more profitable than making combustion engine cars!

“2021 was a breakthrough year for Tesla. There should no longer be doubt about the viability and profitability of electric vehicles. With our deliveries up 87% in 2021, we achieved the highest quarterly operating margin among all volume OEMs, based on the latest available data, demonstrating that EVs can be more profitable than combustion engine vehicles.”  Tesla

My view is that 2021 was the year for Giga Shanghai and the Fremont Factory to shine! The two factories had a combined record number of vehicle deliveries of 0.94 million in 2021. For comparison, these same two factories produced and delivered 0.5 million vehicles in 2020. 

Elon Musk acknowledged Tesla will build more Gigafactories in addition to Giga Texas and Giga Berlin-Brandenburg [locations may be announced by the end of the year]. On the one hand factories should ideally be close to customers. On the other hand, it is so critical to build gigafactories, that I argue there should be a second ultra fast and efficient gigafactory in China.

Tesla allowed us a view into the assembly line in Giga Texas. We see Austin Model Y seats being mounted on a structural battery pack. This shift in manufacturing means all Tesla Gigafactories can produce vehicles even faster [and more profitable] with less parts. This is part of Tesla’s winning plan to accelerate the world’s transition to sustainable energy. Make no mistake though, this was and still is a painfully difficult journey for Tesla!

“Prototypes are easy, production is hard.” 
Elon Musk
Gigafactory Texas- Attaching Seats to a Structural Battery Pack (Source: Tesla Q4 and FY2021 Update)

I used to think that a “Financial Result” meeting should only be about Tesla’s hardcore production and profitability. Now I wholeheartedly endorse allowing Elon Musk to speak in order to draw listeners into imagining a wonderful world of the future. 

Allow me to share a futuristic scenario I envisioned after listening to Elon Musk speak at the “Full Year 2021 Financial Results” meeting:

Here, all vehicles are fully autonomous, so imagine for a moment a world filled with  Cybertrucks, Model Y and many other EVs in their most durable forms, all capable of driving almost 24/7. The cost to get from one place to another is low, and people prefer to use entertaining Robotaxis. Its rare to see anyone owning a personal vehicle. 

In crowded places, there are tunnels beckoning people underground, and away from the traffic up above. Many tunnel entrances are repurposed parking lots or garages. People wonder why there were so many of these strange things built. 

Everywhere, we see friendly Optimus humanoid robots. Optimus are doing almost any kind of menial task, or any task that takes place in uncomfortable situations or temperatures. 

As news headlines proclaim a human labor shortage, Tesla Gigafactories roll out large numbers of Optimus. These kind, sentient humanoid robots help to ease the labor shortage, and propel the economy into a stable place. Optimus helps build Tesla HVAC and hot water systems. They even help install systems in homes. 

"I've designed your home now for maximum efficiency and comfort, test it out and let me know what you think, see you tomorrow as I must go get recharged at the local solar-port Megapack," declares Optimus while climbing into a Robotaxi that has gently pulled up playing Sandstorm on the boombox.

Thanks for reading my first blog post. I’m looking forward to creating interesting takes on Tesla to share with YOU most Saturdays! Listen to the entire Tesla Q4 and Full Year 2021 Financial Results here. 

By the way, I drank that Pepsi and I still have the bottle, just to remind myself not to get locked out again.

Photo by Tomek Baginski on Unsplash

Want to read more excellent articles? I suggest…

Gail Alfar, Exclusive to What’s Up Tesla – All Rights Reserved.

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