Annual profits

Tesla announces record annual profit of $5.5 billion

Tesla reported record annual profit of $5.5 billion on its 2021 earnings call on Wednesday, saying the figure proved the “viability and profitability” of electric vehicles.

The Wall Street Journal reported Tesla also achieved $53.8 billion in sales, with gross margins for the company’s cars dropping to 29.3% from 25.6% in 2020.

“We believe competitiveness in the electric vehicle market will be determined by the ability to add capacity through the supply chain and ramp production,” Tesla said.

Tesla sales rose despite supply chain issues that have plagued many automakers in the industry.

The previous record annual profit for the company was reached in 2020 when the company made $3.47 billion, The Associated Press reported.

In the fourth quarter of 2021 alone, Tesla made $2.32 billion in profit.

“There should no longer be any doubt about the viability and profitability of electric vehicles,” Tesla said.

Tesla also broke its vehicle record in 2021, delivering 936,000 cars, according to the Journal.

The company is expected to deliver more than 1.5 million vehicles in 2022 and aims for 50% annual growth for car deliveries in the coming years.

The news comes after the sources told Reuters Tesla would delay production of its Cybertruck until 2023.