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Tesla expects 50% growth

Tesla expects 50% growth despite supply chain woes

 Tesla sales will grow by more than 50 percent by 2022 compared to last year despite supply supply problems, said chief executive Elon Musk.

The electric car manufacturer reported a $ 5.5bn (£ 4bn) profit last year.

Sales at the company dropped by 71% to $ 53.8bn by 2021, having delivered more than 936,000 vehicles to customers.

But the company has warned growth will slow down, as supply chain issues affecting car manufacturers continue to reduce its production capacity.

Mr Musk said 2021 was “a year of achievement for Tesla and all electric cars”.

“While we were fighting, and everyone was fighting, with supply chain challenges all year round, we increased our capacity by almost 90% last year,” he said.

The company said its supply chain is a “limiting factor” to growth, “likely to continue until 2022”.

He said he expected to grow “by more than 50%” by 2022.

Car manufacturers around the world are facing a shortage of microchips, among other manufacturing and procurement, although Tesla has proven to work better than many.

It uses rare chips and quickly rewrites software, while competitors produce less.

‘Many factories’

The company, which started in California, now has factories in China and Texas, and one is still under construction in Berlin.

The plants are expected to help Tesla dramatically increase its production, as it faces new competition from older car manufacturers focusing on electric vehicles.

It has the challenge of opening two factories this year with chips and other missing parts as well as new batteries and technologies to be introduced.

But Mr Musk said the company was looking to build new industries in new areas in the future.

Looking ahead, Mr Musk said he expected self-driving cars “to be the most important source of Tesla’s profits”.

“Vehicles on ships that begin to drive with software upgrades could end up being a huge increase in the value of goods in any category of goods in history, we will see,” said Mr Musk.

He dismissed concerns that other companies might be a threat, noting on Twitter that companies like GM have “room for improvement”.

Dan Ives, an analyst at Wedbush Securities, said he thought Tesla would have been able to deliver more than 10% to 20% of cars in the last three months of the year without supply problems.

But despite that cloud he said, “these delivery numbers combined with this ‘impressive wage hike’ speak to the need for a look-ahead EV at Tesla heading for 2022”.

 

source-www.fusionofmagazine.com

By Bznessicon

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