Tesla Reports Record Profit but Warns of Supply Problems

Jan 27, 2022
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Tesla mentioned Wednesday that revenue leapt greater than sixfold to $5.5 billion in 2021, the best whole in its 19-year historical past, as gross sales continued to surge, particularly in Europe and China.

However the automaker warned that provide chain troubles stemming from the pandemic would proceed to be a constraint on manufacturing by means of the approaching yr.

“Our personal factories have been operating beneath capability for a number of quarters as provide chain grew to become the primary limiting issue, which is more likely to proceed by means of 2022,” the corporate mentioned.

The automaker reported that its income rose to $53.8 billion in 2021, from $31.5 billion a yr earlier. Deliveries elevated 87 p.c, to 936,000 automobiles.

The corporate’s bottom-line determine included practically $1.5 billion that it earned from promoting regulatory credit to different automakers, a slight decline from the earlier yr.

Tesla grew final yr regardless of a scarcity of laptop chips that restricted different producers’ manufacturing all through most of 2021. It was in a position to mitigate the affect of the scarcity by switching to varieties of chips that had been extra available and writing new directions, or firmware, to be embedded into the chip.

Along with its established factories in Fremont, Calif., and Shanghai, Tesla wants output from new crops it’s constructing in Texas and Germany to take care of its speedy development. It repeated a earlier forecast that it anticipated gross sales to develop about 50 p.c per yr on common for the following few years.

“We goal to extend our manufacturing as rapidly as we are able to,” the corporate mentioned Wednesday.

Tesla dominates the marketplace for electrical autos in the USA, however it’s more likely to lastly face some critical competitors this yr. Ford Motor, Common Motors, Volkswagen and Hyundai have all outlined formidable plans to introduce new electrical automobiles within the U.S. Two fledgling electrical automobile producers, Rivian and Lucid Motors, even have simply began transport autos designed to compete with Tesla.

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Supply- nytimes