Tesla, the car company we all know and love, clearly understands how to adapt. They took advantage of the changing landscape in the automotive industry, and they handled themselves well during the COVID-19 pandemic. This fact was stressed once again on Sunday with the trillion-dollar company providing us some great data on Sunday.
A report from Tesla showed that annual deliveries rose by 87 percent in 2021 from 500,000 to 936,000, smashing the expectation of 897,000 held by analysts. Tesla has been aiming for a 50 percent increase in annual deliveries, and it’s clear they are outpacing that target. This year, the auto industry has faced many challenges, the main ones being the chip shortage and supply chain constraints. Tesla, being the innovative one, has relied on its own software engineers to integrate alternative chips into cars, and they have good supplier relationships along with good supply-chain visibility. This minimized the number of roadblocks that Tesla needed to push through, and this last quarter saw Tesla deliver 308,600 vehicles, which killed last year’s amount. The makeup of these deliveries was mostly Model 3 sedans and Model Y sports cars, with the luxury cars seeing a decrease by more than 50 percent. Nonetheless, Tesla will book a record annual profit in 2021, and sights are brighter this year. Tesla’s new factories in Texas and Germany will open and start to manufacture vehicles, which will be an added boost to a company that is doing well without it. Will this boost Tesla’s share price?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.