Tesla Inc. posted record quarterly revenue on Wednesday, surpassing Wall Street expectations, but warned that supply chain challenges will persist through the year. Following the announcement, the company’s stock dropped 2.7% in after-hours trading.
The company’s revenue reached $17.72 billion in the fourth quarter, up from $10.74 billion a year ago. Analysts had predicted revenue of $16.57 billion, according to Refinitiv data.
Record Vehicle Deliveries Amid Supply Chain Hurdles
Tesla, the world’s most valuable automaker, reported delivering a record number of vehicles in the quarter despite ongoing supply chain disruptions. In a statement, the company acknowledged that its factories had been operating below capacity for several quarters due to supply chain limitations, a situation expected to continue into 2022.
Tesla also shared that its new Austin, Texas factory began production of the Model Y late last year. The company plans to begin deliveries following final certification, though no specific timeline was provided.
Growth Plans and Supply Chain Concerns
Tesla aims to increase production at its California factory to exceed 600,000 vehicles per year. Despite supply chain obstacles, the company has managed better than most automakers by utilizing less scarce chips and rapidly adapting its software.
However, challenges remain as Tesla looks to scale production at two new factories this year, dealing with technology updates, battery shortages, and other supply chain issues. The company is also facing increased competition from rivals launching a range of electric vehicles, including budget-friendly models and electric pickups.
