Tesla Delivered Close to 1 Million Electric Vehicles in 2021 Despite Supply Chain Constraints

Tesla’s fourth-quarter report indicates that it delivered 308,600 electric cars pushing the full-year deliveries to 936,172 vehicles. That means that the fastest-growing US automaker surpassed analysts’ expectations and recorded its best-ever total sales volume.

In a statement, Tesla said that the delivery of 308,600 units of its namesake cars and crossovers was due to the growth in Model 3 sedans and Model Y hatchbacks priced at $100,000 each. The company’s plants in Shanghai specializes in Model 3 and Y, while Fremont, California, produces only Model X and S.

Although Tesla does not break down its sales and production by region, China has been instrumental in delivering its electric vehicles in its territory, Europe, and other markets. This led to an 87% increase in its full-year deliveries compared to 499,647 delivered in 2021.

In a statement late on Sunday, Tesla said, “In 2021, we delivered over 936,000 vehicles. Thank you to all of our customers, employees, suppliers, shareholders, and supporters who helped us achieve a great year.” Additionally, Musk tweeted, “Great work by the Tesla team worldwide!”

Wall Street analysts had forecasted that Elon Musk’s car company would deliver 267,000 vehicles in its fourth quarter and 897,000 in the full year. However, 936,172 cars sold in 2021 includes 24,964 company’s high-end Model X and S and 911,208 lower-priced Model 3 and Y vehicles delivered in the entire year.

According to CEO Elon Musk, 2021 was marked by supply chain challenges. It was extremely difficult to source microchips as well as other unspecified parts. However, despite the global coronavirus pandemic and chip supply shortages, the electric vehicle company increased its vehicle deliveries throughout 2021. In fact, Musk and his company navigated this challenge better than other automakers across the world.

Tesla ramped up production in its first overseas plant in Shanghai, changed some technical aspects, or ditched parts in its cars produced in Fremont, California. For instance, in May, Tesla announced that it would remove radar sensors in its Models 3 and Y designed for drivers in North America. Instead, the cars were to depend on a camera-based system to enable automatic lane-keeping or traffic-adjusted cruise control.

Elon Musk proclaimed that Tesla’s vehicle sales volume would increase to 20 million in nine years. He and his team will achieve that by producing Model Y crossover in Austin, Texas-based new factory and opening another plant in Brandenburg, Germany. Tesla moved its headquarters to Texas in line with its plan to expand its production in Austin after its completion. The goal is for this plant to follow Shanghai’s example.

The good news is that Musk’s company has dominated the American and global battery electric vehicle sales. However, it might lose its overall market share when its competitors bring into the market fully electric models of their own.

Actually, Toyota is planning to invest $35 billion in the production of 30 battery electric vehicles by 2030. Ford received a 200,000 F-150 lightning electric pick-up truck which it intends to produce and deliver, while Rivian has started delivering battery-electric pick-ups and SUVs.

Due to the expected slash in air pollution from transportation, several European countries and cities have set a date for banning a larger number of gas-powered vehicles. In view of that, Tesla’s sales is expected to continue rising as the demand for electric vehicles continues to grow due to climate regulation.

Meanwhile, Tesla issued voluntary recalls of about half-million of all 2017 and 2020 Model 3 vehicles in addition to specific Model S units with potential failures in the trunk latching system.

Analysts anticipate that about 24% of the new vehicles sold globally by 2030 will be fully electric.