Home Business Elon Musk Expects 50% Growth in 2022, Despite Widespread Issues

Elon Musk Expects 50% Growth in 2022, Despite Widespread Issues

Elon Musk Expects 50% Growth in 2022, Despite Widespread Issues
Source: BBC

Despite supply chain issues, Tesla sales will increase by more than 50% in 2022 compared to last year, according to CEO Elon Musk.

Last year, the electric manufacturer earned a record $5.5 billion (£4 billion).

In 2021, the company’s sales increased by 71 percent to $53.8 billion, with over 936,000 automobiles supplied to consumers.

However, the company cautioned that growth will decelerate as supply chain difficulties impacting automakers continue to hamper production capacity.

Mr Musk said that 2021 will be “a watershed year for Tesla and electric automobiles in general.”

“While we fought supply chain problems throughout the year, as did everyone else,” he added, “we managed to raise our volumes by about 90% last year.”

The firm stated that their supply chain was “the primary constraint” to expansion, which “is expected to endure until 2022.”

In 2022, he expects growth to be “comfortably above 50%,” he added.

Carmakers all around the globe are dealing with a scarcity of microchips, as well as other manufacturing and supply chain issues, though Tesla was thought to be doing better than the majority.

While competitors halt manufacturing, it employs less precious processors and swiftly rewrites software.

The company, which began in California, now has plants in China and Texas, as well as one in Berlin under construction.

Even as it confronts fresh competition from established carmakers shifting their focus to electric vehicles, the factories are likely to enable Tesla rapidly boost its manufacturing.

With processors and other parts in low supply and new batteries and technologies to launch, it faces the task of constructing two facilities this year.

Mr Musk, on the other hand, stated that the company was considering establishing additional plants in new places in the future.

Looking ahead, Mr Musk said that fully autonomous vehicles “would become Tesla’s most important source of revenue.”

“We’ll see,” Mr Musk said, “but the vehicles in the fleet effectively becoming self-driving via a software update may end up having the largest gain in asset value of any asset class in history.”

He has discounted fears that other businesses may represent a threat, saying on Twitter that GM and other companies like it “have some opportunity for improvement.”

Wedbush Securities analyst Dan Ives believes Tesla could have delivered 10% to 20% more cars in the last three months of the year if it hadn’t run into supply challenges.

“These delivery statistics, along with a ‘excellent earnings beat,’ speaks to an EV demand trend that looks fairly healthy for Tesla moving into 2022,” he added, despite the cloud.