Tesla's shares started the year with a lot of gains after the electric carmaker reported record deliveries for the fourth quarter, laying the groundwork for fears of supply chain woes that have hit automakers.
Shares of the world's most valuable carmaker went up 10 per cent at a one-month high of US $1,163. Analysts expect the delivery numbers to be strong in 2022 expectations and the pace of expansion of its new factories in Berlin and Texas to be larger determinants.
Cowen analyst Jeffrey Osborne said that the ramps of Berlin and Austin are expected to lead to a deceleration of exports from Shanghai, many of which have been bound for Europe in 2021.
The company, like others, is facing component shortages, as well as factory closures due to the pandemic. Tesla was able to overcome the problems by reprogramming software to use less scarce chips.
In the fourth quarter, Tesla delivered 308,600 vehicles, higher than analysts' forecasts of 263,026 vehicles - including its Model 3 compact cars and Model Y sport-utility vehicles and flagship Model S and Model X vehicles.
RBC Capital Markets revised its quarterly revenue estimate, bumping it up by US $2.3 billion. JPMorgan boosted its profit estimates.
As competition heats up and several startupEV companies are scheduled to launch their first cars on the road, analysts said Tesla has a lot to watch out for in the year 2022, as competition heats up and several startup EV companies are scheduled to launch their first cars on the road. Legacy automakers such as Ford and General Motors also shift their focus to electric cars.
We think 2022 will be a more challenging year than 2021 due to increased competition, and we believe that the design of the four vehicles on the road is getting long in the tooth, which will likely decelerate growth, Osborne said.