Tesla posts record $7.4b profit for 2021 but sees more supply chain woes in 2022
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CEO Elon Musk said he expected annual sales to comfortably grow by more than 50 per cent year-over-year in 2022.
PHOTO: AFP
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NEW YORK (AFP, REUTERS) - Tesla rode rising demand for electric vehicles to a record US$5.5 billion (S$7.4 billion) profit in 2021, but cautioned that supply chain problems would continue to crimp production in 2022.
The outlook showed that even Tesla cannot avoid the shortages that were pitfalls for many larger automakers last year. Also, the company has the additional challenge of opening two new factories this year, with chips and other parts in short supply and new batteries and technologies to be introduced.
Despite those challenges, chief executive Elon Musk said he expected annual sales to comfortably grow by more than 50 per cent year on year in 2022.
Tesla shares rose 3.5 per cent after his remarks in after-hours trade on Wednesday (Jan 26).
The company, which scored an 87 per cent jump in auto deliveries last year in spite of the global semiconductor shortage, reported a 71 per cent 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".
"We plan to grow our manufacturing capacity as quickly as possible," Tesla said in a news release that reiterated the company's target of 50 per cent 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 fator, which is likely to continue in 2022."
In the most recent quarter, Tesla scored a US$2.3 billion profit, up more than eight times the year-ago level as revenues jumped 65 per cent to US$17.7 billion.
It 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 at around the same time.
"We are still in the process of finalising the manufacturing permit from the local authorities (in Germany)," Tesla said.
