A double-whammy of a world scarcity of chips and ships is the only thing standing in the way of Tesla Inc. sustaining income progress in surplus of fifty p.c, according to CEO Elon Musk.

“We’ve had a excellent calendar year, we had report car deliveries,” Musk explained to Tesla’s yearly shareholder conference in Austin, Texas, on Thursday. “It seems like we have a superior possibility of sustaining that. Mainly, if we can get the chips we can do it. Hopefully this chip scarcity will reduce quickly but I really feel self-confident of staying in a position to manage a little something like at minimum earlier mentioned fifty p.c for really a though.”

Although the chip scarcity has dominated automobile-sector headlines this calendar year, Musk said the electrical-car pioneer was grappling with “lots” of source chain challenges.  

“One of the most significant challenges we had in Q3 was can we get adequate ships,” he said. “There was a massive ship scarcity.”

The chip scarcity doesn’t surface to be slowing Tesla down just however. The company previously this week documented report deliveries of 241,300 cars all over the world in the third quarter, beating the previous large of 201,250 vehicles in the next quarter.