By Peter Vercoe (Bloomberg) A double-whammy of a worldwide scarcity of ships and chips is the one factor standing in the way in which of Tesla Inc. sustaining gross sales progress in extra of fifty%, in accordance with Chief Govt Officer Elon Musk. 

“We’ve had a improbable 12 months, we had report automobile deliveries,” Musk informed Tesla’s annual shareholder assembly in Austin, Texas on Thursday. “It seems to be like we’ve got a great likelihood of sustaining that. Principally, if we will get the chips we will do it. Hopefully this chip scarcity will alleviate quickly however I really feel assured of with the ability to preserve one thing like not less than above 50% for fairly some time.”

Whereas the chip scarcity has dominated auto-industry headlines this 12 months, Musk mentioned the electric-car pioneer was grappling with “heaps” of provide chain challenges.

“One of many largest challenges we had in Q3 was can we get sufficient ships,” he mentioned. “There was an enormous ship scarcity.”

The chip scarcity doesn’t seem like slowing Tesla down simply but. The corporate earlier this week reported report deliveries of 241,300 automobiles worldwide within the third quarter, beating the earlier excessive of 201,250 automobiles within the second quarter. 

Tesla’s numbers evaluate favorably with the remainder of the auto {industry}, which noticed U.S. automobile gross sales hunch within the newest three-month interval as a result of limits on manufacturing from supply-chain shortages. Normal Motors Co. took the most important blow, with gross sales in its house market dropping by a 3rd within the newest quarter.  

Musk mentioned the “vital price strain” within the provide chain had pressured Tesla to extend automotive costs, not less than quickly.

“The sheer sum of money we’re spending on flying elements around the globe isn’t nice,” he mentioned.

And it could be not less than 12 months earlier than issues begin to enhance. “We needs to be by means of our extreme provide chain shortages in ‘23,” he mentioned. “I’m optimistic that would be the case.”

By Peter Vercoe © 2021 Bloomberg L.P.

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