Tesla Reports Record Profit, Sees More Supply Chain Woes In 2022
Sumaira FH Published January 27, 2022 | 09:10 AM
New York, (UrduPoint / Pakistan Point News - 27th Jan, 2022 ) :Tesla rode rising demand for electric vehicles to a record $5.5 billion profit in 2021, but Elon Musk's company cautioned Wednesday that supply chain problems would continue to crimp production through 2022.
The electric carmaker, which scored an 87 percent jump in auto deliveries last year in spite of the global semiconductor shortage, reported a 71 percent rise in revenues to $53.8 billion.
But Tesla said it saw no immediate relief from supply chain woes that have hit activity "for several quarters," it said.
"We plan to grow our manufacturing capacity as quickly as possible," it said in a news release that reiterated the company's target of 50 percent annual growth.
"The rate of growth will depend on our equipment capacity, operational efficiency and the capacity and stability of the supply chain," Tesla said.
"Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through 2022." Musk said he was heartened by announced new semiconductor capacity that should alleviate the imbalance by the end of 2022 or early 2023.
But "there could be other issues" that surface this year, he said during a conference call with analysts and investors.
Musk cited the supply chain issues as a factor in a decision to defer rollouts of new products this year, adding that the company will do engineering of its "Cybertruck" electric pickup with an eye towards a possible launch in 2023.
"The fundamental focus of Tesla is scaling vehicles," Musk said, adding that had the company introduced new models in 2021, it would have resulted in lower overall production.
Musk has previously also discussed introducing a $25,000 electric vehicle, but said that product too was not on the front burner.
"We have too much on our plate," Musk said.
In the most recent quarter, Tesla scored a $2.3 billion profit, up more than eight times the year-ago level as revenues jumped 65 percent to $17.7 billion.
Tesla has been ramping up production at factories in California and Shanghai, while also building new facilities in Germany and Texas.
Tesla said it began building Model Y vehicles in Texas in late 2021, while it started equipment testing in Germany around the same time.
"We are still in the process of finalizing the manufacturing permit from local authorities" in Germany, Tesla said.
Musk said he is looking at adding more manufacturing locations, with further announcements likely in late 2022.
CFRA Research analyst Garrett Nelson characterized the company's cautious remarks on supply chains as unalarming.
"Tesla has become masterful at underpromising and overdelivering and has now beat (expectations) in nine of the past 10 quarters," Nelson wrote. "We reiterate a 'Buy' opinion."Shares of Tesla gained 0.8 percent to $944.50 in after-hours trading.
Related Topics
Recent Stories
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 19 April 2024
Today Gold Rate in Pakistan 19 April 2024
Rock-solid Ruud racks up season-leading win in Barcelona
At UN, Iran says it will make Israel 'regret' reprisals
G7 hears calls for 'critical' Ukraine aid
EU seeks to leverage might to confront China, US challenge
5 Customs officials martyred as their vehicle ambushed by terrorists in D I Khan
Pak-New Zealand match called off due to rain
NHA restores traffic on roads affected by recent rains in Balochistan
China to fully support Pakistan's efforts against terrorism: Ambassador Jiang
U.S. envoy calls on Foreign Minister Ishaq Dar
Poland arrests man over suspected plan to kill Zelensky
More Stories From Business
-
Exchange rates for currency notes
10 minutes ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 19 April 2024
35 minutes ago -
Foreign exchange rates
40 minutes ago -
Today Gold Rate in Pakistan 19 April 2024
2 hours ago -
Oil jumps more than 3% on Middle East worries
2 hours ago -
Tokyo's Nikkei index tumbles 3% in morning trade
2 hours ago
-
Pakistan's total liquid foreign reserves reach $ 13.37 billion
12 hours ago -
Stock markets rise as traders consider US rate outlook
13 hours ago -
Business community alarmed by alleged Cigarette tax violations
13 hours ago -
High FED on cigarettes demonstrates positive impact
13 hours ago -
PTCL posts 14 % revenue growth
13 hours ago -
Prudent policies, reforms poised to result in sustainable economic growth: Governor State Bank of Pa ..
14 hours ago