Tesla Q4 business update: Record deliveries spark rally in shares

Last updated:
Tesla Q4 update

Tesla Inc's shares soared on Monday after the electric carmaker reported record deliveries for the fourth quarter. Tesla has reported its Q4 numbers and continued the growth momentum by smashing its previous records. Tesla's deliveries are one of the most closely watched indicators for Tesla. 

The company has already mentioned on numerous occasions that it expects a 50% increase in its car deliveries over a multi-year period. It has been able to report a positive growth number for seven consecutive quarters. It is despite the semiconductor slump and when other auto-makers are struggling.

Tesla Q4 highlights

  • Tesla, the world's most valuable automaker, delivered 308,600 vehicles worldwide in the last quarter of 2021. In Q3, the company sold 241,300 vehicles. The Q4 numbers are well above the analysts' forecasts of 263,026 vehicles.
  • The total number of vehicles sold in 2021 was more than 936,000, a growth of 87% from the previous year where it sold a little less than half-million vehicles. Analysts have earlier forecasted 897,000 vehicles for all of 2021.
  • Deliveries of its flagship Model S sedan and Model X falcon wing SUV represented just under 3% of Tesla’s total deliveries in 2021.

Tesla manufacturing unit updates

  • The US and China are the biggest markets for the company.
  • Currently, Tesla manufactures its Model S, X, 3, and Y at its factory in Fremont, California, and the Model 3 and Y at its plant in Shanghai.
  • Tesla will be adding production capacity with two new factories coming in Austin and Berlin in 2022.
  • More updates on the Tesla manufacturing unit will be made available in the company's earnings call.

Tesla's share price update

  • The recent rally in the company's share price has put it in an exclusive club of $1 trillion market valuation. It is only the 5th company in the US to be part of this elite club.
  • The stock price on Monday increase by 13.53% and closed at $1199.78. In the last one year, the stock has delivered over 64% returns to the investors.

Tesla Target Price

  • Wedbush's analyst Dan Ives has given a buy rating for the Tesla share with a target price of $1,400. 
  • New Street Research analyst Pierre Ferragu has given a target price of $1,580 per share. He believes the company is expected to deliver 1.5 million vehicles in 2022. 
  • The consensus for the total number of units Tesla will sell in 2022 is 1.4 million units.

Road Ahead

By 2030, about 24% of new vehicles sold worldwide are likely to be fully electric. Elon Musk, the CEO, has proclaimed that he wants to increase Tesla’s vehicle sales volume to 20 million annually over the next nine years.