Tesla’s revenues got off to a strong start in 2021, thanks to a successful production increase in China and continued robust demand for its electric cars in a more crowded market, according to figures disclosed after the market closed on Monday.

But Wall Street’s attention fell instead on the profit margins in the company’s core automotive business, which came in below expectations as it registered higher supply chain costs and lower average selling prices due to model transitions. Tesla’s shares slipped back more than 2 per cent in after-market trading.

Elon Musk, chief executive, said Tesla was facing “insane difficulties with a whole range of parts” as it tried to secure supplies in an industry hit by chip shortages. Quarantine restrictions in China had also hurt production there at a critical time, he added.