Tesla posts record earnings, sees supply chain issues ahead
Shares of the electric vehicle company fell 2.7 percent in after-hours trading.
Published On 26 Jan 2022
Tesla Inc on Wednesday expected supply chain issues to continue through this year, after posting record quarterly revenue that beat Wall Street estimates.
The stock fell 2.7 percent in after-hours trading.
Revenue rose to $17.72bn in the fourth quarter, from $10.74bn a year earlier. Analysts had expected the electric-vehicle maker to report revenue of $16.57bn, according to IBES data from Refinitiv.
The world’s most valuable automaker last quarter handed over a record number of vehicles to customers despite supply chain headwinds.
“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,” Tesla said in a statement.
Tesla said on Wednesday that its new factory in Austin, Texas in the United States started production of the Model Y late last year. The company said it plans to start deliveries to customers after final certification, without elaborating on the timeframe.
It said it aims to maximise output from its California factory beyond 600,000 vehicles per year.
Tesla has fared better than most automakers in managing supply chain issues by using less scarce chips and quickly rewriting software.
Tesla faces the challenges of scaling up production at two new factories this year with technology changes as well as battery and other supply chain constraints clouding the outlook.
It faces rising competition from rival companies that are set to launch an array of electric cars, from more affordable models to electric pickups.