Tesla sales will grow more than 50% in 2022 compared to last year despite supply chain issues, CEO Elon Musk said. This will be possible thanks to the optimization of production and the start of work of two new factories.
Last year, Tesla recorded $5.5B of GAAP net income and $5.0B of free cash flow—after spending $6.5B to build out new factories and on other capital expenditures. The manufacturer’s sales rose 71% to $53.8 billion in 2021 as it delivered more than 936,000 vehicles to customers. Tesla has warned that growth is likely to slow as supply chain issues affecting automakers continue to limit its production capacity.
2021 was a breakthrough year for Tesla and for electric vehicles in general. With their deliveries up 87% in 2021, the company has achieved the highest quarterly operating margin among all volume OEMs, based on the latest available data, demonstrating that EVs can be more profitable than combustion engine vehicles.
“While we battled, and everyone did, with supply chain challenges through the year, we managed to grow our volumes by nearly 90% last year,” said CEO Elon Musk during the Q4 2021 Earnings Call. The company said its chain supply has been the main constraint on growth, which is likely to continue in 2022. However, Tesla still expects growth “comfortably above 50%” in 2022, he said.
New factories being built in Austin, USA and Berlin, Germany are expected to help Tesla significantly expand its production. The company is tasked with opening two factories this year, as well as introducing new batteries and technologies. In addition, Musk said that the manufacturer is considering building new factories in new locations in the future.