But the company is also abandoning its reliance on increasing profits through the sale of carbon credits. These accounted for less than 2% of the US$17.7 billion ($25 billion) revenue in the latest quarter, down from 4% a year earlier.
Tesla entered 2022 with questions to answer about new products. Where is the sci-fi-looking Cybertruck that was unveiled in 2019, for example? And when will he start producing the cheaper $25,000 cars he alluded to?
Don’t hold your breath. Tesla has made it clear that the focus this year is on increasing production of existing products.
Buyers may be disappointed, but those who want to see their margins increase will be pleased. Operating costs have already increased by 50% compared to the previous year with the development of new factories in Germany and Texas.
Adding more models to the mix might increase them further.
Despite all the talk of supercomputers and robots, it is vehicle production that will determine the company’s share price in the near future.
The Tesla brand far exceeds its sales. Last year it sold 936,000 vehicles. This equates to around 1% of cars sold globally, according to IHS Markit estimates.
But the capacity is about to increase. Analysts expect it to deliver 1.5 million vehicles this year. If it can exceed this number, the stock price should rise.