Tesla, Supply Chain Issues Are Short-Term Setbacks... Mid-to-Long-Term Growth Remains 'Solid'

Stock Price Plummets 11% One Day After Q4 Earnings Release
Texas and Berlin Plants Operational... "Production Expected to Increase This Year"

[Image source=Yonhap News]

[Asia Economy Reporter Minji Lee] Despite Tesla announcing solid fourth-quarter earnings amid semiconductor supply disruptions, concerns over the supply chain have intensified, resulting in a sluggish stock performance. Securities experts explained that considering Tesla's ongoing efforts to expand production capacity and the advancement of its Full Self Driving (FSD) feature, its mid- to long-term growth prospects remain robust.

According to the financial investment industry on the 31st, Tesla's stock price stands at $846.35. Although Tesla announced strong earnings on the 27th, its stock plunged 11% the very next day. On the 28th, the stock rebounded by over 2%, but it did not fully recover the previous day's losses. Seonjae Song, a researcher at Hana Financial Investment, said, "Concerns over supply disruptions of semiconductors and other raw materials have surfaced, causing delays in new car launches," adding, "Initial cost burdens from the operation of the Berlin and Texas factories also had a negative impact."

Tesla recorded $17.7 billion in revenue and $2.6 billion in operating profit in the fourth quarter of last year, marking growth of 65% and 354% respectively compared to the same period the previous year. Net profit also surged 759% to $2.32 billion, significantly exceeding market expectations. Sales volume increased 87% year-over-year to a total of 308,000 units, with 12,000 units of Model S/X and 296,000 units of Model 3/Y sold, achieving the highest quarterly sales record.

The current market concern lies in supply chain issues. Tesla's global production exceeds 1.05 million units, but shortages in parts and semiconductors are limiting some production capacity. While all global automakers are facing production difficulties due to supply chain problems, Tesla had relatively less impact due to its in-house production of key components, which seems to have heightened market anxiety. Researcher Song said, "Investor sentiment shifted rapidly from reassuring themselves that demand exceeds supply due to the inventory turnover period dropping to 4 days, to worrying that there really is no product to sell," adding, "They want overwhelming growth as an opportunity to outpace competitors, but if supply chain issues persist, there is growing regret over potentially missing this opportunity."

For these reasons, Tesla will focus on expanding current models such as Model Y and 3, as well as ramping up factory mass production, while postponing the release of new models scheduled for this year?including Cybertruck, Semi, Roadster, and Optimus?to next year. Yongkwon Moon, a researcher at Shin Young Securities, explained, "The delay in Cybertruck's launch is disappointing amid the release of pickup EV trucks from traditional automakers like Ford F-150 and GM Hummer."

However, the imminent operation of the Texas and Berlin factories is a positive sign. The Texas factory began operations at the end of last year, and the Berlin factory is conducting production equipment tests while undergoing final approval procedures with relevant authorities. Accordingly, production capacity is expected to approach approximately 2 million units in the fourth quarter of this year. Researcher Moon explained, "Elon Musk mentioned that the search for the site of the fifth factory could begin this year, and related announcements might be made around the end of the year."

Within this year, the advancement of FSD functionality is also expected to expand the contribution of the software business to earnings. Enhanced FSD technology is anticipated to drive profitability and growth through price increases and a rise in vehicles equipped with the option. Researcher Yongkwon Moon said, "FSD is one of Tesla's current major priorities," adding, "The North American price of FSD increased from $7,000 in the first quarter of last year to $12,000 in the first quarter of this year, and it is expected to exceed $100,000 in the future."

This content was produced with the assistance of AI translation services.