For Tesla, Inc. (TSLA) investors, the new year has delivered positive news. On the morning of Jan. 3, the electric car maker’s stock jumped 15% to $1,163.63 after it announced an 87 percent increase in yearly vehicle deliveries to 936,000 from the previous year. In the fourth quarter of 2021, the firm delivered 308,600 automobiles, up from 180,667 in the previous quarter. 1
These numbers came in greatly above expert expectations of 267,000 for the current quarter and 897,000 for the entire year of 2021.
Important Takeaways
- Tesla’s shares rose more than 15% after the company disclosed fourth-quarter deliveries that surpassed analyst expectations.
- The increase in car deliveries positions the corporation for strong profits beat.
- Analysts are adjusting their earnings forecasts for Tesla’s fourth quarter.
Tesla’s stock has risen sharply, reversing the company’s recent setbacks. Tesla CEO Elon Musk’s stock sale at the end of last year lowered the company’s formerly high-flying stock price by more than 10%, resulting in volatile trading patterns. As a consequence of today’s statement, analysts are increasing their price targets and earnings predictions, which might herald the beginnings of a short-term rise.
An Outstanding Fourth Quarter
Model 3 and Model Y automobiles accounted for the majority of Tesla’s delivery volume in the fourth quarter of 2021. The models, which are less expensive variants of the company’s more expensive vehicles, accounted for more than 96 percent of all client deliveries. The rest was made up of Model S and Model X vehicles.
Tesla’s delivery numbers are astounding, especially given that it accomplished this during an unusual pandemic year hampered by supply chain delays, semiconductor shortages, and a slew of regulatory issues. For example, owing to a lack of raw supplies, it had to halt operations at its plants. Also Tesla’s Autopilot technology has been the subject of an inquiry by the National Highway Traffic Safety Administration (NHTSA).
Conclusion
Tesla is a company which is very much in demand among investors and it is likely to see higher demand in the coming days. This means that Tesla’s stock price could continue to surge this year and traders may want to add this stock in their stock portfolio.
You can find your best stock broker on CompareBroker and take advantage of this opportunity while it is there. Remember, if you believe that valuations are rich, you can always take the other side and short the Tesla stock as well.
