27/09/2022

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Tesla (TSLA) expects factories to run below capacity during 2022 due to supply constraints

The EV automaker will likely fail to hit its desired production numbers in the coming year due to circumstances beyond its control.

While the future looks awfully bright for Elon Musk and his baby Tesla Motors (TSLA), exactly how bright will depend on some factors out of the eccentric billionaire’s control. In its Q4 2021 Earnings report released today, Tesla cautioned investors that while it is striving to maximize its total vehicle production potential for the fiscal year 2022, the ongoing supply constraints and problems arising from the COVID-19 pandemic will prevent the maximum possible growth.

In the earnings report, Tesla reveals that some of its factories have been running below optimal capacity in the back half of the fiscal year 2021. While the company has ambitions of hitting 50 percent growth in production capacity year over year, those goals will be virtually unreachable with the current global supply chain problems.

Here’s an excerpt from today’s Q4 2021 earnings report.

We plan to grow our manufacturing capacity as quickly as possible. Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries. The rate of growth will depend on our equipment capacity, operational efficiency and the capacity and stability of the supply chain. Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through 2022.

This story is developing…