Tesla reported Sunday that it delivered 936,000 cars in 2021, an 87 % improve from the yr earlier than, regardless of the pc chip scarcity that has disrupted auto manufacturing around the globe.
Within the fourth quarter alone, the corporate delivered greater than 308,000 automobiles, a 71 % improve from the quarter a yr earlier. The overwhelming share of the deliveries had been of the Mannequin three sedan and the Mannequin Y hatchback. Wall Avenue analysts had been anticipating deliveries of about 266,000 vehicles within the fourth quarter, and about 855,000 for the yr.
“The numbers are arduous to poke holes in,” Daniel Ives, an analyst at Wedbush Securities, wrote in a notice to traders. “Whereas there are lots of opponents within the E.V. house, Tesla continues to dominate market share as evidenced once more this quarter.”
Tesla elevated gross sales regardless of a world scarcity of laptop chips, which function the brains for quite a lot of electronics, together with engine controllers and contact screens. The scarcity compelled most automakers to idle some vegetation for weeks at a time and saved them from producing as many automobiles as that they had deliberate.
In July, Tesla’s chief government, Elon Musk, stated his firm was overcoming the scarcity by switching to forms of chips that had been extra available and writing new directions, or firmware, to be embedded into the chip. Tesla could make such a change as a result of the parts in its vehicles are designed to be managed largely by software program.
Perceive the Provide Chain Disaster
Tesla doesn’t escape its deliveries by nation. A lot of its current progress has been propelled by gross sales in Europe and China.
The leap in deliveries capped a momentous yr wherein Tesla’s inventory worth and income soared. It has additionally labored to open factories close to Austin, Texas, in addition to Berlin, in hopes of sustaining its speedy progress.
In October, Tesla’s market worth for the primary time exceeded $1 trillion, making it extra invaluable than Normal Motors, Ford Motor, Toyota, Volkswagen, Stellantis, BMW and a number of other different automakers mixed.
On Friday, Tesla’s inventory closed at $1,056.78, up from slightly below $700 on the finish of 2020. The inventory’s rise was fueled by rising gross sales and income. Within the third quarter, the company earned $1.6 billion, greater than double its earnings in all of 2020, its first profitable year.
With shares at dizzying heights, Mr. Musk started promoting massive chunks of his inventory, partly to cover taxes, after taking a ballot amongst his followers on Twitter. A number of instances he stated he was achieved promoting however continued.
In whole, Mr. Musk sold more than $16 billion worth of Tesla stock. The transactions concerned the exercising of 22.eight million choices awarded to Mr. Musk as a part of his compensation and bonus packages.
Tesla has stated it hopes deliveries will improve about 50 % a yr for the following a number of years, and is relying on output from its Austin and Berlin factories to succeed in its aim. Each factories are anticipated to start producing Mannequin Y hatchbacks quickly.
On the similar time, Tesla’s product high quality has remained uneven. On Thursday, the corporate advised federal regulators that it planned to recall more than 475,000 cars for 2 separate defects that would have an effect on security — a misaligned latch on the entrance hood, which might permit the hood to open unexpectedly, and wiring to the rearview digital camera that may be broken by opening and shutting the trunk. A day later, automobiles in China had been recalled as effectively.
How the Provide Chain Disaster Unfolded
The pandemic sparked the issue. The extremely intricate and interconnected world provide chain is in upheaval. A lot of the disaster might be traced to the outbreak of Covid-19, which triggered an financial slowdown, mass layoffs and a halt to manufacturing. Right here’s what occurred subsequent:
As well as, the corporate and its Autopilot driver-assistance system have come underneath nearer scrutiny by security regulators in the USA. Teslas have been concerned in a collection of crashes with different automobiles, together with some that resulted in fatalities, whereas the Autopilot system was engaged.
The corporate continues to promote its Autopilot system, which may take over a few of the steering, braking and accelerating duties from drivers, and a extra superior set of options, Full Self Driving, that it provides for $10,000 however has thus far allowed solely a choose group of shoppers to check.
In August, the National Highway Traffic Safety Administration opened a formal investigation into how Autopilot acknowledges objects on the highway. It’s particularly trying into 11 cases when Teslas crashed into emergency automobiles that had stopped on highways and had their lights flashing.
The company can also be taking a look at greater than two dozen different crashes involving Teslas that had been underneath Autopilot management. Eight of these crashes have resulted in a complete of 10 deaths for the reason that first occurred in 2016.