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Elon Musk Calls 2021 as 'Breakthrough Year' For Tesla | Q4 2021 Yields $2.3 Billion Profit

Elon Musk Calls 2021 as 'Breakthrough Year' For Tesla | Q4 2021 Yields $2.3 Billion Profit

Categories: Financial, Autos
Posted: January 28, 2022

Tesla CEO Elon Musk considered 2021 a huge year for the EV company following its improvement for its fourth-quarter profit. The tech boss announced that they were able to collect a profit of $2.3 billion for the said quarter.

With that, the business magnate is positive that they will continue to improve in 2022 amid supply chain issues.

Breakthrough Year For Tesla

The Verge wrote in its latest report that the electric vehicle manufacturer managed to salvage its performance over the past year. In the final quarter of 2021, the company has a net income of $5.5 billion which is far from what it earned in 2020 at $721 million only.

 

Tesla managed to flip its profit to big returns despite the declining average sales of the EVs because some companies offered cheaper alternatives such as Model Y SUV and Model 3 Sedan.

"2021 was a breakthrough year for Tesla, and for electric vehicles in general. While we battled, as everyone did, with supply chain challenges throughout the year, we managed to grow our volumes by nearly 90 percent last year," CEO Elon Musk announced during the earnings call.

On top of that, the tech boss said that he was hopeful to achieve above 50% growth for this year.

Amid several issues such as chip shortage, Tesla is only one of many firms which struggle from supply and production problems. Although they were already a part of the cycle, the EV maker surpassed its expectations and showed impressive records.

The car manufacturer was reportedly re-writing its software while utilizing less scarce chips to cope with the production.

Tesla to Expand EV Factories 

In another report by BBC, Tesla is eyeing for an expansion of its plants in 2022. Beginning in California, the electric car pioneer has already constructed factories in many parts of the world such as Germany and China.

To hasten the car production for this year, Musk plans to build new auto factories in the future. This would also be their safety net to keep up with the intense competition with other EV makers.

Despite the hardships amid the semiconductor crisis, the California-based company opened two plants to sustain those locations dealing with supply problems.

Most importantly, Musk said that the profitability for Tesla is within the capability of the "full self-driving" cars. He also considered that some companies might be a threat to them, yet he knew that there's always a space for improvement.

Per Wedbush Securities analyst Dan Ives, Elon's firm should have exceeded its production if it wasn't for supply chain problems. He believed that the company could have delivered up to 20% more EVs in the last three months.

He also predicted that Musk would be richer this 2022 if he achieved all the five financial tranches in the next few months and years.

Meanwhile, Tesla's AI Director Andrej Karpathy revealed that Tesla Bot will soon become the most powerful artificial intelligence platform 

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