Tesla Surmounts Supply Chain Challenges With Impressive Q4 Deliveries – Cryptovibes.com – Daily Cryptocurrency and FX News
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A Tesla Model 3 car is becoming available in Singapore. Tesla Inc on January 2, 2022, reported quarterly deliveries that far surpassed Wall Street estimates, riding out the global chip shortages as it increased its China production. That was the sixth consecutive quarter that the world’s most valuable automaker posted some record deliveries.
Tesla, which is led by billionaire CEO Elon Musk, delivered 308,600 vehicles in Q4, 2021, far more than analysts’ projections of 263,026 vehicles. The company’s October-December deliveries increased by around 70% from a year earlier and almost 30% higher from the record deliveries in the preceding quarter.
Musk wrote on Twitter:
“Great work by Tesla team worldwide!”
His electric car-making firm increased production in China although competition increased and regulatory pressure surged after consumer complaints about product safety. Tesla now ships China-made models to Europe and some of the Asian nations.
Yearly, the carmaker increased its deliveries by 87% from a year earlier to reach 936,172 vehicles in 2021. Elon Musk said in October 2021 that Tesla will manage to maintain a yearly growth rate of over 50% for “quite a while.”
New Tesla Factories
The managing partner at venture capital firm Loup Ventures, Gene Munster, said on January 2, 2022:
“They have beaten all the odds. The first is the demand for their products is through the roof. And the second is they’re doing a great job of meeting that demand.”
He believed that Tesla’s deliveries will reach 1.3 million vehicles in 2022 despite headwinds in production at its new factories and supply chain issues. Zachary Kirkhorn, Tesla Chief Financial Officer (CFO), said in October 2021 that it was challenging to forecast how rapidly the firm can boost production at the new factories set up in Berlin and Texas where new vehicle technologies and new teams will be used in the production process.
Tesla confirmed in October 2021 that it wanted to build its first production cars at these facilities by the end of last year. However, it is not clear whether the company met that target. The company is yet to respond to questions asked about the two plants.
The Berlin factory had originally been scheduled to start production last summer. In a December 31, 2021 report, Deutsche Bank said that it expected Tesla to make around 1.5 million vehicle deliveries in 2022, although the current challenges of chip shortages remain a major risk to the company’s vehicle production rate.
Massive Shortages
Last year, vehicle makers cut chip orders as the pandemic and lockdown restrictions hit demand. However, Tesla did not reduce its production projection with suppliers to support the quick growth plan that enabled it to survive through the chip shortage, as highlighted by Musk.
Tesla designs some of its chips in-house unlike many of the other automakers, and it reprogrammed software to use the less scarce chips, according to a statement by Elon Musk. Previously, he said that “2021 has been the year of super crazy supply chain shortages.” However, his October statement showed that he was optimistic that these issues would pass this year.
The strong sales came even after Tesla increased US vehicle prices steeply this year to offset increased supply chain costs.
In October last year, Tesla surpassed $1 trillion in market capitalization after rental Car Company Hertz confirmed that it ordered 100,000 of the Tesla vehicles. The firm’s shares lost some ground after Elon Musk tweeted in November that he was considering selling 10% of his stake in Tesla. But in general, the company shares gained 50% in 2021.
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