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Despite record revenue, Tesla shares fell in after-hours trading.

Tesla reported record quarterly revenue on Wednesday, beating Wall Street estimates, but said supply chain issues would persist throughout the year.

In after-hours trading, the stock fell 2.7 percent.

Revenue increased to $17.72 billion in the fourth quarter, up from $10.74 billion the previous year. According to IBES data from Refinitiv, analysts expected the electric-vehicle maker to report revenue of $16.57 billion.

Despite supply chain challenges, the world’s most valuable automaker delivered a record number of vehicles to customers last quarter.

“Our own factories have been running below capacity for several quarters as supply chain became the primary limiting factor, which is expected to continue through 2022,” Tesla said in a statement.

Tesla announced on Wednesday that production of its Model Y began late last year at its new factory in Austin, Texas, and that it plans to begin deliveries to customers after final certification, without specifying a timeframe.

It stated that it intends to increase output from its California plant beyond 600,000 vehicles per year.

Tesla said its new factory in Austin, Texas, is now producing Model Ys, and the company plans to begin deliveries to customers soon.
Photographs by Getty Images

Tesla has outperformed most automakers in terms of supply chain management, thanks to the use of less scarce chips and the ability to quickly rewrite software.

Tesla faces challenges this year in ramping up production at two new factories, with technology changes, battery and other supply chain constraints clouding the outlook.

It will face increasing competition from rivals who plan to launch a variety of electric vehicles, ranging from more affordable models to electric pickup trucks.

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Akanksha Jain

Akanksha Jain love to learn new stuff every day. With a background in computer science and a passion for writing, she loves writing for Startup, Business sections of Editorials99.

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