Tesla surmounts provide chain woes with blockbuster This autumn deliveries By Reuters

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© Reuters. FILE PHOTO: Tesla China-made Model 3 vehicles are seen during a delivery event at its plant in Shanghai, east China, Jan. 7, 2020. REUTERS / Aly Song

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By Hyunjoo Jin and Nivedita Balu

(Reuters) – Tesla Inc on Sunday reported record quarterly shipments that far exceeded Wall Street estimates and eliminated global chip shortages while Chinese manufacturing ramped up.

It was the sixth straight quarter that the world’s most valuable automaker posted record deliveries.

Tesla (NASDAQ :), led by billionaire CEO Elon Musk, delivered 308,600 vehicles in the fourth quarter, well above analysts’ forecast of 263,026 vehicles.

Tesla’s deliveries from October through December were up about 70% year-over-year and nearly 30% from the previous quarter’s record shipments.

“Great work by the Tesla team around the world!” Musk wrote on Twitter (NYSE :).

Its electric car maker has ramped up production in China despite increasing competition and increasing regulatory pressure following consumer complaints about product safety.

Tesla supplies models made in China to Europe and some Asian countries.

On an annual basis, the automaker increased its deliveries in 2021 by 87% year-on-year to 936,172 vehicles.

Musk said last October that Tesla will be able to maintain an annual growth rate of more than 50% “for quite a while”.

NEW FACTORY

“You have beaten all odds,” said Gene Munster, managing partner of venture capital company Loup Ventures, on Sunday.

“The first is that the demand for their products is skyrocketing. And the second is that they are great at meeting that demand, ”he said.

Munster said he expected Tesla’s deliveries to climb to 1.3 million vehicles this year despite headwinds in production at its new factories and supply chain problems.

Tesla CFO Zachary Kirkhorn said in October it was difficult to predict how quickly the company could ramp up production in new factories in Texas and Berlin that use new vehicle technologies and new teams.

Tesla said in October that it intends to build the first production cars at both plants by the end of 2021, but it is unknown whether that goal has been met. Tesla did not respond to a question from Reuters about the systems. The Berlin plant was originally supposed to start production last summer.

Deutsche Bank (DE 🙂 said in a report on Friday that Tesla is expecting nearly 1.5 million vehicle deliveries this year, although chip shortages continue to pose a risk to production.

‘SUPER CRAZY’ SCARCE

In 2020, automakers cut chip orders as the pandemic and lockdown measures hurt demand. However, Tesla has never scaled back its production forecast with suppliers to support its rapid growth plan that helped it overcome the chip shortage, Musk said.

Tesla, which unlike most automakers, develops some chips in-house, has also reprogrammed software to use less scarce chips, according to Musk.

Musk, who previously said “2021 was the year of super insane supply chain shortages,” said in October that he was optimistic that these issues would pass in 2022.

The strong sales came even after Tesla hiked U.S. vehicle prices this year to offset higher supply chain costs.

Tesla hit over $ 1 trillion in market cap in October after car rental company Hertz announced it had ordered 100,000 of its vehicles. The company’s shares lost some ground after Musk wrote on Twitter in November that he was considering selling 10% of his stake in Tesla.

Overall, Tesla shares rose 50% last year.

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