Tesla warns of supply chain constraints as company reports record profits

Tesla warns that constraints in its supply chain will hit the electric carmaker’s results “through 2022” as it reports record net profit of $2.3 billion for the fourth quarter of 2021. .

Quarterly figures prove that electric car pioneers lead the way Elon Musk skillfully navigated supply chain Congestion and chip shortages have affected the rest of the car industry.

But on Wednesday, Tesla said in an earnings statement that its factories “have been operating below capacity for several quarters like [the] supply chain becomes the main limiting factor”, a trend “likely to continue into 2022”.

Shares of Tesla immediately fell more than 5% but then traded 1.5% higher in after-hours trading when Musk, the chief executive, spoke on an investor call.

Despite supply chain troubles, Musk said Tesla’s output growth this year will be “comfortably above 50%”. Last year, Tesla delivered 936,222 vehicles, an 87% year-over-year increase.

Musk also pledged to “resolve” fully self-driving technology by 2022 – a claim he has made in previous years but has failed to do so.

Industry experts are skeptical that Tesla can achieve its self-driving ambitions, but that hasn’t stopped the company from selling driver-assistance features for $10,000.

In the long term, Musk said fully self-driving cars will become a core part of Tesla’s bottom line, turning cars from depreciating assets into products that increase in value over time as owners can rental to earn revenue.

“I’d be shocked if we don’t achieve fully human-safe self-driving this year,” Musk said.

Tesla’s quarterly net profit was $2.3 billion, 760% higher than a year earlier, but still below the $2.55 billion Wall Street expected. The company has now recorded 10 consecutive quarters of net profit. For the full year of 2021, the company recorded $5.5 billion in net profit, up 665% from 2020.

Fourth-quarter revenue grew 65% year-over-year to $17.7 billion, much higher than forecasts of $16.6 billion.

Company fans looking for updates on the upcoming Cybertruck, Semi, and Roadster vehicles made the earnings call disappointing as Musk confirmed “we won’t be introducing new models this year.” – that wouldn’t make any sense.”

He explained that the push to introduce new vehicles will lead to a decline in total production, and that the focus this year will be on scaling up operations.

When asked about the potential of a Tesla for $25,000, Musk declined. “We’re not currently working on a $25,000 car,” he said. “At some point . . . but that’s the wrong question. Most importantly, when will cars be self-driving?”

Despite recent supply chain difficulties, the company has called 2021 a “breakthrough year,” adding that its 14.7% operating margin is better than all manufacturers. mass cars, “showing that electric vehicles can be more profitable than internal combustion engine vehicles”.

Shares of the company, now headquartered in Austin, Texas after relocating from California, were down 22% this year before Wednesday’s results were released, dragging its market capitalization down. $934 billion.

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