The unstoppable train that is Tesla has just announced their eagerly awaited news for Quarter 4 deliveries. The Tesla share price closed out 2020 at $705.67 after rising dramatically in the last few days on expectations of great deliveries.
Here are the quarterly delivery figures and also annual figures for production and deliveries.
Deliveries for the quarter came in at 180,570 which should please investors and analysts. Deliveries for the year came in at 499,550 which is within a whisker of the half million that Elon Musk had predicted for Tesla. You get the feeling from a recent tweet by Elon Musk that all the stops were pulled out with a few small incentives given out to customers to take delivery by 31st December 2020.
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All eyes will now be on next week when the markets open to see how the share price reacts but you cannot take it away from Elon Musk and Tesla that to hit their goal in 2020 during one of the most disruptive years for business with the pandemic is a remarkable achievement. I recently watched a video that Elon Musk did with the media back in 2014 where he publicly declared that Tesla would deliver half a million cars a year by 2020.
A lot of the big news channels mocked Tesla at the time with a lot of high profile investors and analysts mocking such statements. Elon Musk Has probably enjoyed the last couple of days, but then he has got used to proving people wrong over the years.
I think one of the things that must give investors of Tesla stock great comfort is that in Elon Musk and his senior team, they have the ability to hit these targets when most other businesses have been using the pandemic as an excuse to mis their targets.
It feels with this Tesla news that they now have a solid foundation to build on with deliveries hitting targets, profitability been achieved in recent quarters and inclusion in to the S&P 500. The big challenge for Tesla is to build on this and become more of a mass producer. The infrastructure is been put in place as we speak with new factories under construction, but the 2 main challenges I see now is Tesla’s ability to attract volume in what is now becoming a more competitive space and their ability to drive down the cost of their cars and remain profitable. A lot of the big manufacturers are releasing new electric models and increasing the pace of their efforts to bring out new models.
At the current time it is seen as a bit of a statement owning a Tesla but as they become more popular on the roads it remains to be seen if the badge holds its value with consumers. Once BMW, Mercedes, Jaguar and the other prestige manufacturers release more electric models it will be interesting to see which badge holds the desirability factor. Up until now if you wanted a quality electric car, then Tesla were pretty much you’re only choice. I feel the fight for Tesla to ramp up deliveries in to the millions will be just as much a challenge as the early years, but would you bet against Elon Musk achieving those sort of delivery numbers. I for one would not want to take a big short position against the stock.
One thing is for sure the Tesla News and Tesla Delivery Numbers are great entertainment and eagerly awaited by us all.
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