Tesla rakes in record $5.5 billion profit in 2021

Elon Musk’s group managed to boost its shipments by 87% last year despite the shortage of semiconductors and supply problems.

Tesla, benefiting from the craze for its electric vehicles, made a record $5.5 billion profit in 2021, but warned that problems with its supply chain could linger throughout the year.

The group of Elon Musk had already announced that it had jumped its deliveries by 87% last year, despite the shortage of semiconductors and the supply problems which affect the entire automotive sector. Its turnover soared 71% to 53.82 billion dollars, slightly above analysts’ forecasts. “2021 has been a breakthrough year for Tesla. There should no longer be any doubt about the viability and profitability of electric vehicles”, the band commented in a statement. Tesla even claims that its operating margin in the fourth quarter was higher than those of all the big traditional automakers, “thus demonstrating that electric vehicles can bring in more money than thermal engine vehicles”.

Earnings excluding exceptional items and reported per share, the benchmark on Wall Street, was $6.78, again exceeding expectations. In the fourth quarter alone, the group saw its turnover grow by 65% ​​to 17.72 billion dollars and its net profit jump up to 2.3 billion dollars.

Supply difficulties

The car manufacturer, which has announced since the start of 2021 that it wants to increase its deliveries by an average of 50% per year for several years, is maintaining this objective. But he warns that “the growth rate will depend on the capacity of (its) equipment, operational efficiency and the capacity and stability of the supply chain”. “Our own factories have been operating below capacity for several quarters, primarily due to supply chain, which is expected to continue into 2022”he adds.

To increase production, the group is counting on its new factories in Austin, Texas, and Berlin. Production was supposed to start there last year, but is still in the testing phase, Tesla said on Wednesday. The group explains that it is waiting for the last green light from the authorities on the Model Ys manufactured in Austin to begin delivery. Tesla has also continued to profit from the sale to other companies of the carbon credits granted to it because its cars do not emit pollutants, the revenue generated by these operations having reached $ 1.47 billion in 2021.

Information on new models expected

Many observers expect Elon Musk to bring information on the arrival of new models during the conference call scheduled for Wednesday evening, whether it is the Cybertruck pickup, the Semi truck or the a $25,000 car. It has been nearly two years since the first Model Y deliveries in March 2020 since Tesla has not launched any vehicles. The group simply indicated in the press release that it was doing “some progress” on the production launch of the Cybertruck.

Competition is growing in its niche, between traditional manufacturers like Ford and GM, which promise a salvo of new electric models in the coming years, and start-ups like Rivian, which began delivering its first electric pick-ups at the end of 2021.

The group’s share fell 3% in electronic trading following the closing of the New York Stock Exchange. After the announcement of a mega-order of 100,000 electric vehicles from the rental company Hertz, Tesla entered the small club of companies worth more than 1000 billion dollars on Wall Street at the end of October. It has since fallen back a bit, like most tech stocks.

.

Leave a Comment