Business

Tesla reports record profit, sees more supply chain woes in 2022

Carmaker says it aims to grow manufacturing capacity as fast as possible

Updated 4 years ago · Published on 27 Jan 2022 1:00PM

Tesla reports record profit, sees more supply chain woes in 2022
Tesla, which scored an 87% jump in auto deliveries last year in spite of the global semiconductor shortage, has reported a 71% rise in revenues to US$53.8 billion. – AFP pic, January 27, 2022

NEW YORK – Tesla rode rising demand for electric vehicles to a record US$5.5 billion (RM23.1 billion) profit in 2021, but Elon Musk’s company cautioned yesterday that supply chain problems would continue to crimp production through 2022.

The electric carmaker, which scored an 87% jump in auto deliveries last year in spite of the global semiconductor shortage, reported a 71% rise in revenues to US$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% 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 the 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 roll-outs 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 US$25,000 electric vehicle, but said that product too was not on the front burner.

“We have too much on our plate,” Musk said. – AFP, January 27, 2022

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