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Elon Musk confident Tesla can steer past supply chain issues

Elon Musk, CEO of Tesla, said that the shutdown of factories in China and severe pressures in the supply chain will further halt the growth of the electric car maker in the current quarter.

However, he stuck to the bullish forecasts for the whole of 2022 on Wednesday, claiming that a new, constructed dedicated Robotics Without a steering wheel or pedals will go into production in 2024 and become a “massive growth driver” for the company.

The comments came when Tesla revealed it was facing the worst crisis in the automotive industry’s supply chain to generate revenue and profits above most forecasts on Wall Street in the first quarter. The news raised the company’s shares by about 5% in after-market trading, mimicking a loss of the same magnitude earlier in the day.

Tesla said a continuing shortage of chips and limitations caused by Cubid-19 restrictions hampered production and left it with long waiting lists for New carsSome are stretched to next year.

Tesla’s Shanghai plant closed down according to local rules for several days in March, and Musk said that since the plant is only now starting to raise production again, production in the automaker’s second quarter is likely to be “roughly on par” with the previous one. Period. This will mark the Quarter second in a row Of production growth halted, after a 83% jump in vehicle volumes last year.

However, the Tesla head predicted that the acceleration would be rapid at New factories in Berlin And Austin will allow the company to overcome bottlenecks and create “over 1.5 million cars this year,” a figure higher than most analysts had expected.

Tesla has postponed the production of new vehicles like its own Cyber ​​truck Until next year in the hope that focusing on existing models will allow it to expand faster in new plants. Musk’s promise of a robotic train for 2024 added to the plethora of vehicles waiting to enter production, some lagging years behind schedule.

The timing will also depend on whether Tesla will be able to overcome ongoing problems in developing its self-driving software, though Musk predicted it would finally achieve a breakthrough by the end of the current year.

Meanwhile, Musk has admitted that rising Tesla prices at a time when its profits are peaking may seem “unreasonable”. But he said long waiting lists mean many of the cars sold will face higher production costs. “That’s our best guess,” he said.

Tesla’s revenue in the last quarter more than doubled from a year earlier to $ 18.7 billion, or about $ 1 billion more than most analysts had forecast, as year-on-year volumes jumped, helping to raise some prices to offset higher delivery costs. The $ 3.22 pro forma earnings more than tripled and exceeded the $ 2.26 estimates.

The results were strengthened by $ 679 million from sales of regulatory credit, more than double the previous three months. Tesla receives credits from some governments for producing zero-emission vehicles more than it is required by local regulations, and can sell them to other automakers that produce too little. She warned that credit sales would change greatly and eventually decrease.

Even without credit sales, Tesla has managed to raise its gross profit from its car operations – the best index for its core car business – to 30% for the first time, compared to 29.3% in the last quarter of last year.

Elon Musk confident Tesla can steer past supply chain issues Source link Elon Musk confident Tesla can steer past supply chain issues

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