Tesla Inc (TSLA.O) reported record quarterly deliveries on Sunday, significantly outpacing Wall Street expectations as the company battled global chip shortages while ramping up manufacturing in China.

The world’s most valuable manufacturer set a new quarterly delivery record for the sixth time in a row. In early trading on Monday, Tesla shares were up 10%, hitting a one-month high.

In the fourth quarter, the company, driven by billionaire CEO Elon Musk, delivered 308,600 automobiles, well exceeding analysts’ expectations of 263,026 units.

It’s deliveries from October to December were up about 30% year over year and nearly 70% higher than the previous quarter’s record deliveries.

“Tesla’s global staff is doing fantastic work!” On Twitter, Musk expressed his thoughts.

Despite increased competition and regulatory pressure as a result of consumer complaints about product safety, his electric car company increased manufacturing in China.

Models built in China are shipped to Europe and Asia.

In 2021, the company increased its annual deliveries by 87 percent over the previous year, bringing the total to 936,172 units.

In October of last year, Musk predicted that the company will be able to maintain an annual growth rate of more than 50% for “quite a while.”

NEW MANUFACTURERS

On Sunday, Gene Munster, managing partner at venture capital company Loup Ventures, declared, “They have beaten all the odds.”

“The first is that there is a massive demand for their items. The second point is that they are exceedingly well-equipped to meet that requirement “He expressed himself.

Despite challenges in production at its new plants and supply chain issues, Munster predicted that Tesla’s deliveries would climb to 1.3 million vehicles this year.

In October, Tesla Chief Financial Officer Zachary Kirkhorn said it was difficult to anticipate how quickly the firm would be able to ramp up production at new factories in Texas and Berlin, which will use new car technologies and teams.

Tesla stated in October that it hoped to start producing cars at both locations by the end of 2021, although it is unclear whether it fulfilled that goal. A enquiry from Reuters concerning the plants was not answered by Tesla. It had planned to start producing in Berlin last summer.

Tesla is anticipated to deliver over 1.5 million vehicles this year, according to a forecast released on Friday by Deutsche Bank, however semiconductor shortages remain a concern.

SHORTAGES THAT ARE ‘SUPER CRAZY’

As a result of the pandemic and lockdown precautions, manufacturers reduced chip orders in 2020. Tesla, on the other hand, never cut their production target with suppliers to support its quick expansion strategy, which helped it weather the chip scarcity, according to Kirkhorn.

According to Musk, Tesla reconfigured software to use less scarce processors, despite the fact that it designs some chips in-house, unlike most manufacturers.

Musk, who previously stated that “2021 has been the year of really crazy supply chain constraints,” expressed optimism in October that the concerns would be resolved in 2022.

The good sales came despite Tesla raising vehicle pricing in the United States dramatically this year to address rising supply chain costs.

In October, Tesla’s market valuation surpassed $1 trillion after rental car giant Hertz announced it had bought 100,000 of the firm’s vehicles. Tesla’s stock dropped after Musk announced on Twitter in November that he was considering selling 10% of his investment in the company.

In total, Tesla stock increased over 50% last year.

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