In 2021, Tesla notched another year as the electric vehicle (EV) industry leader, capturing 14.4% market share. Despite widespread semiconductor shortages, the company delivered more than 936,000 vehicles, up 87% from the prior year. Better yet, management's relentless pursuit of manufacturing efficiency continued to pay off, as Tesla's average cost per vehicle fell to $36,000 in the third and fourth quarters, down from $38,000 in the first quarter and $84,000 in 2017. That helped the company post an industry-leading operating margin of 14.6% in Q3, and that figure actually ticked up to 14.7% in Q4.
Several factors fueled that uptick in efficiency, including a tremendous cost advantage in battery pack production and increased output from the factories in Fremont, California, and Shanghai, the latter of which helped localize its China business. Not surprisingly, Tesla delivered another strong financial performance last year. Revenue rose 71% to $52.8 billion and cash from operations surged 93% to $11.5 billion.
Going forward, shareholders have plenty to be excited about. Tesla plans to ramp up production at two new factories in 2022: one in Texas and another in Berlin, the latter of which marks its first production facility in Europe. Tesla is also working to introduce its 4680 battery cells, a new technology that should strengthen its cost advantage in battery pack development. And next year, the company hopes to have new models in production, including the Cybertruck, Semi, and Roadster.
Tesla is also a frontrunner in the race to build a fully self-driving car. In fact, CEO Elon Musk believes that goal is achievable in 2022. If successful, Tesla could then start an autonomous ride-hailing service, which could supercharge its profitability. Case in point: Ark Invest believes autonomous ride-hailing platforms will generate $2 trillion in annual profits by 2030.
Even if that timeline doesn't pan out, Tesla is still a leader in the EV industry, which will only get bigger in the years ahead. And it has also positioned itself as a key player in the AI and robotics industries. Tesla teased an autonomous humanoid robot, Optimus, during its AI Day last year, and Musk believes that technology could be "more significant that the vehicle business over time." That's why this stock is a smart long-term investment.
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