Tesla reported positive quarterly results while experiencing supply chain issues.
Thanks to strong demand for its electric vehicles, the electric carmaker reported better-than-expected quarterly results on Wednesday. Tesla also reported a massive jump in sales of its semi-trucks. But Musk said that the temporary supply chain issue would continue this year.
Shares dropped around 5% on Wednesday after Tesla warned that the supply chain issues could persist throughout 2022. However, later it bounced into slightly positive territory.
The performance of the company and supply chain issues
Earnings (adjusted): $2.53 per share, vs. $2.37 per share expected by analysts, according to Refinitiv
Revenue: $17.73 billion, vs. $16.58 billion expected by analysts, according to Refinitiv
According to a statement, revenue increased 66% year over year in the quarter, while automotive revenue totaled $15.98 billion, up 72%.
Energy generation and storage revenue were $689 million, down 9% and below the StreetAccount consensus of $815.2 million. It was the lowest revenue for that division since the beginning of 2021.
At $2.33 billion, Net income was up against some 761%, and Tesla said it had a 27.5% gross margin, compared with 26.7% in the previous quarter.
The company said that their factories ran below capacity for several quarters as the supply chain became the primary limiting factor. The company added that it is likely to continue through 2022.
CEO Elon Musk said that he expects Tesla to have chip shortages in 2022. He added that the company would not introduce new vehicle models this year.
He said that Tesla would work on engineering to create those future vehicles.
In the meantime, shareholders were waiting for progress updates on the company’s Semi truck and experimental Cybertruck pickup.
The CEO also said the company is not working on a compact electric vehicle.
Musk indicated current supply chain issues in a tweet in November 2021. He wrote that 2021 had been a supply chain nightmare that was not over.
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