Tesla Inc. reported record-breaking quarterly revenue on Wednesday, beating analyst forecasts, but cautioned that supply chain disruptions are expected to continue throughout the year. Following the earnings release, Tesla shares fell 2.7% in after-hours trading.
The electric vehicle maker posted revenue of $17.72 billion for the fourth quarter, a significant rise from $10.74 billion in the same period last year. Market analysts had projected $16.57 billion, according to data from Refinitiv.
Record Deliveries Despite Operational Constraints
Tesla, currently the world’s most valuable carmaker, delivered a record number of vehicles in the fourth quarter despite persistent supply chain challenges. The company noted that its facilities have been running below their full capacity for several quarters due to component shortages, a problem expected to persist in 2022.
Tesla announced that its newly-built plant in Austin, Texas began producing the Model Y at the end of last year. Deliveries are set to begin once the final regulatory approvals are secured, although no exact date was given.
Expansion Goals Amid Ongoing Challenges
The company is targeting an annual production capacity of over 600,000 vehicles from its Fremont, California facility. Despite global supply chain issues, Tesla has managed to outperform other automakers by relying on less scarce semiconductor chips and quickly updating its software systems.
Still, Tesla faces significant hurdles in ramping up operations at two new manufacturing sites. These include integrating new technologies, addressing battery supply shortages, and navigating broader logistical bottlenecks. Additionally, Tesla is encountering rising competition from other manufacturers entering the EV market with a wide range of vehicles, from economy models to electric trucks.
