Tesla’s record delivery numbers are boosting stocks

A Tesla compressor is on display at a charging station in Santa Clarita, California, USA on October 2, 2019. REUTERS / Mike Blake

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Jan 3 (Reuters) – Tesla Inc (TSLA.O) stocks started the year off with strong gains after the electric automaker reported record shipments for the fourth quarter, allaying fears of supply chain issues that have hit automakers.

The world’s most valuable automaker’s stocks rose 13.5% on Monday to $ 1,199.78 each, the largest daily percentage increase in nearly 10 months.

Analysts expect the strong delivery figures to support expectations for 2022 and see the pace of expansion of the new factories in Berlin and Texas as an important determinant.

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“We expect a gradual increase in Berlin and Austin, and believe that these increases will lead to a slowdown in exports from Shanghai, many of which were destined for Europe in 2021,” said Cowen analyst Jeffrey Osborne.

Like others, the company sees itself confronted with component bottlenecks as a global logistics crisis and factory closures due to the restricted supply caused by the pandemic. However, Tesla managed to overcome many of the problems by reprogramming the software to use less scarce chips.

Tesla delivered 308,600 vehicles in the fourth quarter, more than analysts’ forecast of 263,026 vehicles, including the Model 3 and Model Y SUVs and the Model S and Model X flagships, the company reported on Sunday. Continue reading

RBC Capital Markets revised its quarterly revenue estimate, increasing it by $ 2.3 billion. JP Morgan has raised its earnings estimates.

Still, analysts said Tesla has a lot to look out for in 2022 as competition intensifies with several startup electric vehicle companies poised to put their first cars on the road. Old automakers such as Ford (FN) and General Motors (GM.N) are also shifting their focus to electric cars.

“We are seeing a more difficult year in 2022 than 2021 with increased competition, and we believe that the design of the four vehicles on the roads is getting on in years, which is likely to slow growth,” said Osborne.

Some analysts also said that Tesla stock is overvalued given its relatively lower production volume. Tesla, which produced around 930,000 vehicles last year, is about four times as valuable as Toyota Motor (7203.T), which plans to produce 9 million vehicles in March by the end of it.

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Reporting by Nivedita Balu and Aniruddha Ghosh in Bengaluru; Additional coverage from Hyunjoo Jin in San Francisco; Adaptation by Maju Samuel and Chris Reese

Our Standards: The Thomson Reuters Trust Principles.

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