Tesla expects to grow by more than 50% in 2022

Tesla Inc forecasted on Wednesday that vehicle deliveries would increase by more than 50% year on year in 2022, despite persisting supply chain difficulties that it expects to be resolved until next year. Elon Musk’s optimistic prognosis comes after the world’s most valuable automaker reported record quarterly sales that exceeded Wall Street projections. However, the cautious warning about supply chain issues demonstrated that even Tesla cannot avoid the shortages that were a stumbling block for many larger automakers last year. After-hours trading saw a 0.8 percent drop in shares.

Tesla, which manufactured a few cars at its Berlin and Texas factories last year, stated that scaling up production there would be contingent on supply chain challenges and the effective implementation of new technology. Musk stated that Tesla will not be releasing any new models this year, but that the Cybertruck, Semi, and Roadster would be available next year. Tesla has stated that it is not currently working on the $25,000 model that Musk promised would be available in three years in 2020. According to Refinitiv IBES data, revenue increased to $17.72 billion in the fourth quarter, exceeding analyst projections of $16.57 billion.

Tesla has outperformed most manufacturers in terms of supply chain management, thanks to the use of less rare processors and the ability to swiftly rewrite software. Despite supply chain challenges, the manufacturer delivered a record number of automobiles to customers in the fourth quarter. “We still expect to be partly or primarily chip limited this year,” Musk said during a conference call, adding that chip constraints should be lifted next year.

 He predicted that Tesla’s volume will increase by more than 50% over last year, implying that the company will deliver more than 1.4 million vehicles this year. Tesla stated that the objective could be met even with existing factories in Fremont, California, and Shanghai.

Tesla said its Texas plant will deliver the first vehicles outfitted with its next-generation 4680 batteries built in California this quarter, as anticipated.

Musk stated that he expects Tesla vehicles to be fully self-driving by the end of this year. Humans are currently required to sit behind the wheel in order to drive the car if necessary.

“I would be shocked if we do not achieve full self-driving, safer-than-human this year,” he said.

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