Tesla set a company record last year, delivering just short of 500,000 vehicles globally, WSJ reports.
Why It Matters: The Silicon Valley electric-vehicle maker just missed its goal of half a million deliveries with 499,550. But considering a Covid-19 outbreak temporarily shut down the company’s lone U.S. factory, it’s an impressive milestone. Tesla’s resiliency has yielded an absolute explosion in its share price, which grew more than 700% last year.
- Tesla said it produced 509,737 vehicles last year.
- The year prior, it delivered 367,500 vehicles globally.
- Tesla also ended the year with a record quarter, delivering 180,570 vehicles. The previous quarterly record was 139,593.
- When Tesla’s Fremont, California plant closed down, its new Shanghai factory came to the rescue. The Chinese facility began delivering cars in 2019, which help offset production slowdowns back on the homefront.
What’s Next: Tesla is now a member of the S&P 500 index and has no plans to slow down, with the company announcing plans to produce 20 million cars annually by the end of the decade. In doing so, Tesla plans to add factories in Berlin and Austin, Texas. But even as Deloitte estimates put the electric vehicle portion of new vehicles sales growing from 3.6% in 2020 to 12.5% in 2025, Tesla “faces a difficult task as it looks to introduce additional vehicle models and open new factories in Germany and Texas as part of Mr. Musk’s growth ambitions.”
Tesla ($TSLA) delivered on it’s goal of 500,000 vehicles produced, which is important for a company that has historically over-promised and under-delivered, at least in terms of timing.
Does $TSLA look overvalued now? Sure. But if you believe the company can grow to produce 10 to 20 million vehicles annually over the next 10 years, $TSLA will do fabulously.
As always, this one is about how much faith you have in how large Tesla can get and how likely Elon is able to get the company there.