Insights

Could Tesla deliveries double this year?

A huge Q4 and two new factories are a recipe for more mind-boggling growth in 2022.
The post Could Tesla deliveries double this year? appeared first on The Motley Fool Australia. –

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Just as Tesla‘s (NASDAQ: TSLA) blowout fourth-quarter vehicle deliveries are grabbing headlines, Morgan Stanley‘s Adam Jonas is focusing on 2022. The company’s staggering momentum, he says, now makes two million deliveries this year possible.

If Tesla were to achieve this, the company’s growth rate would accelerate compared to its already-impressive growth in 2021 and deliveries would more than double.

Let’s take a look at why Jonas thinks two million deliveries are now within the realm of reason.

The path to 2 million deliveries

At this point we’d still describe [two million deliveries in 2022] a stretch target but one that looks far more realistic following [Tesla’s fourth-quarter] deliveries,” said the Morgan Stanley analyst in a note to investors on Monday. 

Jonas’ belief that this stretch target is possible is based on two main ideas.

First, of course, is Tesla’s incredible momentum in Q4. The company grew deliveries 71% year over year to 308,600, blowing past analysts’ estimates. Even on a sequential basis, the growth was very strong. Deliveries increased 28% between the company’s previous quarterly record of 241,391 just three months earlier. And that figure was up from 201,304 three months before that. Growing like this during a period of some of the worst automobile supply constraints in history speaks volumes about Tesla’s momentum.

The second reason Jonas is so optimistic about Tesla’s potential in 2022 is the company’s new factories. After spending essentially all of 2021 building a new factory in Berlin, Germany, and another in Austin, Texas, these two new factories are just now coming online. Jonas believes that once these factories are ramped up to full production capacity, Tesla will have a global installed production capacity of nearly three million units annually, up from a capacity of just over one million units annually at the end of the company’s third quarter. Of course, it’s going to take a while for these two new factories to get to full capacity.

Don’t expect guidance like this from Tesla

After years of regularly missing its production and delivery targets, electric-car maker Tesla has recently become conservative when it comes to its annual delivery guidance. Last year, for instance, management simply said it expected deliveries to grow more than 50% in 2021. This would imply about 750,000 or more deliveries, up from just under 500,000 in 2020. But actual deliveries soared 87% year over year to more than 936,000 — and this occurred during a challenging supply and logistics environment.

Tesla may provide conservative guidance again for 2022. Indeed, it wouldn’t be surprising to see the company once again guide for deliveries to grow 50% or more. While this would be a far cry from Jonas’ bull case for as many as two million deliveries, it speaks to Tesla’s strengths that we’re calling a forecast for 50% growth conservative — especially when you consider that that growth would be on top of 87% growth in the prior year. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Could Tesla deliveries double this year? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Tesla right now?

Before you consider Tesla, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Tesla wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Here’s why the Tesla (NASDAQ:TSLA) share price soared 13% overnight

Can Tesla Lead EV Stocks Higher in 2022?

3 obscure lithium ASX shares ready to pop in 2022

Lucid, Rivian, and Tesla are just the tip of the EV stock iceberg

The ASX share market coverage that captivated readers in 2021

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!