Tesla expects more than 50% growth by 2022, despite supply chain challenges

By Hyunjoo Jin and Nivedita Balu

SAN FRANCISCO (Reuters) – Tesla (NASDAQ 🙂 Inc. on Wednesday predicted that vehicle shipments would grow by more than 50% year-on-year in 2022, despite persistent supply chain problems that are expected to ease only next year.

CEO Elon Musk’s good fortune came after the publication of a quarterly revenue record that surpassed Wall Street’s expectations as the world’s most valuable automaker.

But a cautious note on supply chain problems also showed that Tesla could not avoid the shortcomings that were the gaps for many major automakers last year. Shares fell 0.8% after hours.

Tesla, which produced a number of cars at factories in Berlin and Texas last year, said the increase in production there would depend on the wind against the supply chain and the successful introduction of new technologies.

Musk said Tesla will not release any new models this year, but expects to launch its Cybertruck, Semi and Roadster next year. Tesla said it is not working on a $ 25,000 model that Musk promised to launch in three years in 2020.

Revenue rose to $ 17.7 trillion in the fourth quarter, above analyst estimates of $ 16.57 billion, according to Refinitiv’s IBES data.

Tesla has done better than most automakers in managing supply chain problems by using fewer chips and rewriting software quickly. The automaker delivered a record number of vehicles to customers in the last quarter despite headwinds against the supply chain.

“We still hope to have some or all of the chips limited this year,” Musk said in a conference call, adding that chip limits should be eased next year.

He said Tesla’s growth in volume would exceed 50% more comfortably than last year, which is expected to deliver more than 1.4 million vehicles this year.

Tesla said the goal could also be achieved with current plants in Fremont, California and Shanghai.

Tesla said its Texas plant will deliver this quarter with its next-generation 4680 batteries as planned for the first vehicles made in California.

Musk said he hoped Tesla’s vehicles would be fully capable of driving this year. Nowadays humans have to sit behind the wheel to drive a car, if necessary.

“I would be surprised if we don’t get full self-driving this year, safer than humans,” he said.

The number of fully autonomous beta vehicles in the United States rose to nearly 60,000, more than a few thousand by the end of September. Tesla has tested an improved version of its automated driving software on public roads, but said the features do not make cars autonomous.

Tesla exceeded the $ 4.08 billion adjustment in earnings before interest, tax, amortization and amortization (EBITDA), according to Refinitiv. This allowed Musk to pay for an additional option under the 2018 compensation package.

Quarterly earnings hit $ 340 million from Musk’s payroll taxes related to the implementation of options related to its 2012 compensation package.

Profit also reflected an increase in raw material, merchandise and logistics costs and expenses associated with guarantees and refunds. Tesla remembers more than 475,000 of its 3 and S electric cars to deal with rear camera and trunk problems that increase the risk of a collision.