Tesla saw a recorded delivery of 308,600 vehicles in quarter 4, a record and capstone for the fiscal year that saw the company joining the $1 trillion valuations exclusive club.
As per Bloomberg news, the company posted better than expected results in the last quarter that pushed the total sales to 936,000 plus. This was 87% growth over less than half a million deliveries in 2020. As per a survey by Bloomberg with 13 analysts, an average of 263,000 cars was expected for the quarter, though some analysts increased estimates towards the end of December.
Quarter deliveries of Tesla are watched closely. They are key indicators for the company’s financial health and a barometer for electric vehicle demand as Tesla had led from the front the thrust for battery-powered vehicles.
The share price of the electric vehicle market leaders soared in 2021 on expectations of continued growth. The stocks increased almost 50% in 2021. Its market capitalization exceeded $1 trillion, catapulting Tesla as one of the five public listed stocks in the U.S. to achieve the status.
The stock closed at $1056.78 on December 31, down by 1.3% over its previous day.
Tesla has repeatedly said that it expected a 50% growth in deliveries in coming years. It posted seven months of consecutive increase in quarterly delivery despite a slump in semiconductor supplies. This lobe affected production for the car manufacturers even while demand for customers increased.
CEO Elon Musk, who recently became the world’s richest person, described 2021 as a nightmare for the supply chain. His company continued to grow deliveries each quarter. His company Tesla fared better than other auto manufacturers because it could offset the chips delivery shortfall by making their engineers rewrite software for chips acquired for another purpose.
The company believes its deliveries should be viewed conservatively, and the final numbers could vary by 0.5% or more.
The production for the fourth quarter was 305,840 and for the entire year at 930,422.
The company does not give its sales break up geographically, but China and the U.S. are its biggest market, and models Y and 3 constitute the bulk of sales.
Tesla makes models 3, S, X, and Y in its California factory, while models Y and 3 are manufactured in the Shanghai plant. In 2022 Tesla will be increasing its production capacity with its two new plants in Berlin and Austin, Texas.
CEO Musk said that he would update its new product plans in its following earnings report.
