Tech

Tesla has reported record profits for 2021 and will not offer any new models this year

Tesla has solved supply problems and recorded more than three times higher profits than last year, exceeding Wall Street expectations for this quarter.

The company reported an adjusted profit of $ 2.9 billion, which is a strong increase over the profit of $ 903 million a year earlier and well above $ 2.6 billion, as analysts had predicted, writes CNN.

Revenue of $ 17.7 billion is 65% higher than the previous year. These results mean that Tesla earned $ 7.6 billion in one year and earned $ 53.8 billion in revenue.

“This year we will not introduce new vehicle models”

CEO Elon Musk has reappeared on a conference call with investors after missing out on one three months ago. Six months ago, he said he would not come to such meetings again unless he had something “important” to say.

The message to investors is that Tesla is delaying plans for new vehicles due to supply problems facing the company: “We will not introduce new vehicle models this year. That will not make sense. We will still have limited access to parts. “We will be ready to start production, I hope next year.”

Tesla has introduced plans for a number of vehicles in its product range, including the Cybertruck pickup, the Roadster model or the $ 25,000 car, which would be cheaper than any of its current models.

Bringing a new product to market in 2021 required a lot of attention and resources, Musk said, and the same goes for this year. He added that the company was dealing with “multiple supply chain challenges”, but gave no details. “The shortage of chips, while not as pronounced as last year, is still a problem,” Musk said.

In a statement, the company warned that it had faced challenges in the global supply, transport, labor and manufacturing chain in the last quarter, saying it was limiting its ability to operate factories at full capacity.

Tesla sold 936,000 vehicles in 2021

Problems with the supply of parts, especially computer chips, have been a problem for the entire automotive industry for more than a year. Tesla has managed to increase its production and sales in the face of this shortcoming. In contrast, its traditional competitors in the automotive industry were forced to temporarily close their factories and limit production. This has resulted in declining inventory of new vehicles across the industry and record high prices for car buyers.

In contrast, Tesla has managed to satisfy customers’ increased appetite for electric vehicles. Global sales of electric vehicles are estimated to have grown to 4.5 million last year from 2.1 million in 2020, according to research firm LMC.

Tesla sold 936,000 vehicles in 2021, which is almost double the 500,000 vehicles sold in 2020.

“Given that chip shortages are still a major problem in the automotive world and given logistics problems globally, this impressive revenue boost speaks to the demand for electric vehicles, so Tesla enters 2022 with pretty good results. Says Dan Ives, an analyst at Wedbush Securities.

Tesla has announced that it expects to increase production at existing plants in California and Shanghai, along with increased production at new plants in Austin, Texas and Berlin.

“We believe there is potential for expanding the total capacity of the Fremont, California plant to over 600,000 vehicles per year. “We believe that the competitiveness of the electric vehicle market will be determined by the ability to add capacity across the supply chain and increase production,” the company said in a statement.

Tesla began production of the new Model Y SUV at its Austin plant late last year.

“After the final certification of the Model Y produced in Austin, we plan to start shipping to customers,” the company said, adding that it was working on production licenses with the Berlin authorities for the factory there.

It is obvious that there is a demand for Tesla cars, assuming that the company can increase its supply. The supply of Tesla vehicles decreased in the last quarter and the inventories were enough for only four days of sales, compared to 11 days in the previous year and an average of 28 days in 2017. Even in an industry that has a record low stock of new vehicles, this is an extremely small supply.

It is not yet known when Cybertruck will be available

Tesla’s earnings and revenue statement did not provide any details on when Cybertruck would be available, other than saying it would be produced in Austin under the Model Y.

Shares of Tesla, which fell 11.3% in 2022, rose during the first part of the conference call with investors. Tesla shares are worth more than the market value of the world’s 10 largest carmakers, even though the company is smaller than any of them.

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