Tesla share price rises over 100 points in one day due to strong Q4 2021 deliveries

Tesla Motors shares exploded yesterday after its Q4 car delivery reports blew expectations out of the water.
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3 min read
Tesla Car

Shares of Tesla Motors Inc. ($TSLA – NASDAQ) had one of its best market days in the company’s history yesterday, as investors were very impressed by the numbers it reported on its fourth-quarter deliveries report, surpassing many analysts expectations.

Tesla’s share price grew by a staggering $143 per share on Monday (13.5%), and had a market close of $1,199.78. The company’s share price is now approaching its all-time high of $1,239.87 which was set on November 5, 2021. The share price has been hovering around $1,000 and occasionally dipping below that figure as CEO Elon Musk sells large holdings of his company in order to fulfil his tax obligations. However, it has now been confirmed that the number of necessary shares have now been sold.

Tesla Inc’s share price grow 49% over the course of 2021, and it seems to have had a great start in 2022 thanks to this delivery report.

The delivery report showed that the company had produced over 305,000 vehicles and delivered in excess of 308,000 for Q4 2021. The overwhelming majority of those numbers came from its Model 3 and Model Y cars. Taking the year as a whole into account, Tesla produced 930,422 of its vehicles and delivered 936,172 – again, the majority of these were Model 3’s and Model Y’s.

The numbers represent that Tesla has overcome many hurdles such as supply chain issues and chip shortages by increasing production in countries such as China. The company also aims to open more Gigafactories in Berlin and Texas as well as across the world in 2022 to continue their high production rates.

Analysts predicted the company would deliver around 250,000 vehicles and the report represents a 30% increase in delivery and production compared to Q3 2021. Gene Munster, the managing partner at a venture capital firm named Loup Ventures, says he expects Tesla vehicle deliveries to reach 1.3 million for the whole of 2022, with Deutsche Bank predicting a figure of 1.5 million. CEO Elon Musk said himself that the company should be able to maintain an annual growth rate in deliveries of 50% for ‘quite some time’.

Adam Jones of investment firm Morgan Stanley released a new note saying that a target of 2 million Tesla deliveries in 2022 is ‘far more realistic following Q4 deliveries.’

Several analyst firms such as KGI has maintained its Outperform rating for the stock and has set a price target of $1,480, up from $1,000. Many firms have followed, including Philippe Houchois of Jefferies, which has reiterated a ‘Buy’ rating for the company and a target of $1,400 as well as Deutsche Bank who raised the price target from $1,000 to $1,200 on a ‘Buy’ rating.

Rumours are suggesting that Musk is planning a big announcement about the new GigaTexas facility this week – with many anticipating that production has already started there.

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