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Tesla surmounts supply chain woes with blockbuster Q4 deliveries

Stock MarketsJan 03, 2022 03:07PM ET
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2/2 © Reuters. FILE PHOTO: Tesla China-made Model 3 vehicles are seen during a delivery event at its factory in Shanghai, China January 7, 2020. REUTERS/Aly Song 2/2

By Hyunjoo Jin and Nivedita Balu

(Reuters) -Tesla Inc on Sunday reported record quarterly deliveries that far exceeded Wall Street estimates, riding out global chip shortages as it ramped up China production.

It was the sixth consecutive quarter that the world's most valuable automaker posted record deliveries. Tesla (NASDAQ:TSLA) shares were up 10% to a one-month high in early trading on Monday.

Tesla, led by billionaire CEO Elon Musk, delivered 308,600 vehicles in the fourth quarter, far higher than analysts' forecasts of 263,026 vehicles.

Tesla's October-December deliveries were up about 70% from a year earlier and nearly 30% higher from record deliveries the preceding quarter.

"Great work by Tesla team worldwide!" Musk wrote on Twitter (NYSE:TWTR).

His electric car company ramped up production in China even though competition rose and regulatory pressure mounted following consumer complaints over product safety.

Tesla ships China-made models to Europe and some Asian countries.

On an annual basis, the automaker boosted its deliveries by 87% from a year earlier to 936,172 vehicles in 2021.

Musk said in October last year that Tesla will be able to maintain an annual growth rate of more than 50% for "quite a while."

NEW FACTORIES

"They have beaten all the odds," Gene Munster, managing partner at venture capital firm Loup Ventures, said on Sunday.

"The first is the demand for their products is through the roof. And the second is they're doing a great job of meeting that demand," he said.

Munster said he expected Tesla's deliveries to grow to 1.3 million vehicles this year despite headwinds in production at its new factories and supply chain problems.

Tesla Chief Financial Officer Zachary Kirkhorn said in October that it was difficult to predict how quickly the company will be able to boost production at new factories in Texas and Berlin, which will use new vehicle technologies and new teams.

Tesla said in October that it aimed to build its first production cars at both facilities by the end of 2021, but it is not known whether it met that target. Tesla did not respond to a question from Reuters about the plants. Its Berlin factory had initially been scheduled to begin production last summer.

Deutsche Bank (DE:DBKGn) said in a report on Friday that it expected Tesla to make nearly 1.5 million vehicle deliveries this year, although chip shortages remain a risk to production.

'SUPER CRAZY' SHORTAGES

In 2020, automakers cut chip orders as the pandemic and lockdown measures hit demand. But Tesla never reduced its production forecast with suppliers to support its rapid growth plan, which helped it weather the chip shortage, Kirkhorn has said.

Tesla, which designs some chips in-house unlike most automakers, also reprogrammed software to use less scarce chips, according to Musk.

Musk, who previously said, "2021 has been the year of super crazy supply chain shortages," said in October that he was optimistic that those issues would pass in 2022.

The strong sales came even after Tesla hiked U.S. vehicle prices sharply this year to offset higher supply chain costs.

Tesla hit over $1 trillion in market capitalization in October after rental car company Hertz said it ordered 100,000 of its vehicles. The company's shares lost some ground after Musk wrote on Twitter in November that he was considering selling 10% of his stake in Tesla.

Overall, Tesla shares gained 50% last year.

Tesla surmounts supply chain woes with blockbuster Q4 deliveries
 

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Comments (19)
Iyarin Boonnum
Iyarin Boonnum Jan 03, 2022 11:04AM ET
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Even Elon Musk said market will collapse soon, that's why he sold he share 🤣🤣
Steven Jacobs
Steven Jacobs Jan 02, 2022 11:51PM ET
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I love seeing all the Bears crying over their losses and TSLA’s dominance
Robert smith
Robert smith Jan 02, 2022 8:27PM ET
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Just as I suspected.  Tesla CEO Elon Musk sold a massive stake in his company over the past several weeks. And yet he owns 564,000 more shares than he did at the start of the selling spree. An analysis of his filings shows Musk is not backing away from his holdings in Tesla, despite his promise to follow a poll he sent to his Twitter followers, who called on him to sell 10% of his stake.  So he:  1. Found out in Oct  through inside information he had privy to  that sales and production were sky high, and decided to Buy while  letting everyone THINK chips were causing major production problems -which they obviously WEREN'T. 2. But using inside information to buy wasn't enough for him, greed made him commit blatant stock manipulation by announcing a massive sales of 17 million shares and then actually using that sale to drive prices down 50%, at which point he BOUGHT 17.5 million shares BACK -just BEFORE the quarterly report was released that he KNEW would drive them right back to top,
Steven Jacobs
Steven Jacobs Jan 02, 2022 8:27PM ET
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Great job recapping what Musk clearly knew the whole time what he was doing. He played Bears like a grand master chess player against someone that knows checkers
Ron Love
Ron Love Jan 02, 2022 8:27PM ET
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You are a certified ape. Elon doesn’t pay market price for his ESOs, he pays $6.24 per share.
Robert smith
Robert smith Jan 02, 2022 8:27PM ET
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Ron Love   if you really think that Elon or ANYONE can just buy all the tesla stock they want for 6.24 when its SELLING for $700-$1100 a share then YOU are the mental midget here. If that were legal he and EVERY OTHER ceo in this market would just sell 10 million shares of their companies for $700 a share and then buy them right back for $6.24 and then buy a couple COUNTRIES with the money they made!. What you are referring to is the SPECIAL price he gets on LIMITED numbers of shares as payment for his BONUS. He wanted to get  the maximum bonus but DIDNT want to get out of the shares with GREAT news coming. SOOO he did exactly what iI posted. He SOLD all the shares he got for the bonus at $1100 a share. TOLD the whole world he was DUMPING stock, Drove the price WAY down and then bought them right back before the run up on earnings.. Get it? stupid? $6.24 a share my ass.
Robert smith
Robert smith Jan 02, 2022 8:27PM ET
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Ron Love   Sure buddy, Elon just calls his broker anytime he wants and says give me 10 million shares of Tesla, show him his special 95% discount card and gets them for $6 a share. Then a few he tell him to Sell them into the market for $1100. and nobody complains right? your the mental midget here, CEO get annual bonuses, and most get them in STOCK rather than cash. but they are cash EQUIVILENT and they ARE LIMITED. the POINT was he wants top dollar value, so he SOLD them at TOP, and he wanted to be SURE it was top so he told the whole world he was dumping them, MAKING it top. then he bought them right back before the good news about earnings, which was insider trading and stock manipulation PLAIN  AND SIMPLE. the whole world saw it.
Michael Mcdonough
Michael Mcdonough Jan 02, 2022 6:43PM ET
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And No unions thank you
Robert smith
Robert smith Jan 02, 2022 6:43PM ET
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Is that supposed to mean that the cheap wages that make billionaires even richer is something we should all be cheering for? Sorry but the article I just read says -the unions were RIGHT, Tesla COULD have easily paid them a living wage and health insurance and still made a killing. But once again because of fools like you who help them get away with making obscene amounts of money while the people who actually do all the work have to struggle just get by in life. Great work my friend, if your not a billionaire trying to keep workers down, then your a traitor to all your fellow workers worldwide who just want to be able to send THEIR kids to college so that they too have a chance in life.All over this world first world countries give MONTHS of vacation, healthcare and tons of other benefits Americans will NEVER have thanks to guys like you, And guess what? Those European companies are STILL MAKING LOTS OF MONEY.
Ron Love
Ron Love Jan 02, 2022 6:43PM ET
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Robert smith Tesla employees have great wages, insurance, and an employee stock purchase plan where they get shares 15% cheaper than the lowest market price the previous quarter. You don’t really know much at all about Tesla, do you? All your posts on this article are way off base.
Robert smith
Robert smith Jan 02, 2022 6:43PM ET
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Ron Love   MY posts are way off base? Weren't you the mental midget that implied Elon only pays $6 a share for Tesla stock when its selling for $1100?? As if he could call his broker and order 10 million shares of Tesa and then show him his special 95% discount card and only pay $6 a share for them. Then turn around and sell them for $1100 a share -and nobody would complain RIGHT? He got those shares as a CASH EQUIVILENT for his bonus. They were just like PAY. BUT he wanted that pay to be MAX, so he sold those LIMITED NUMBER of shares for $1100 and then because he wanted them BACK before earnings, and he wanted them Cheap, he told the whole world he was DUMPING HIS STOCK, driving it down to nearly half, where he promptly bought them right BACK before the run up he knew was coming with earnings. its called STOCK Manipulation and INSIDER TRADING. Elon musk only pays $6 for Tesla stock.... LOL
Mart Bab
Rubberduck1973 Jan 02, 2022 6:27PM ET
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This article does read a bit like a promo. Or am I seeing stuff? Looks like someone wants their Tesla stock back up so they can sell. Question you mist Elons sell signals
Ron Love
Ron Love Jan 02, 2022 6:27PM ET
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What Elon sell signals? He entered into a 10B5-1 plan on Sept 14 to exercise 22.8m options he earned as CEO compensation. He owns more Tesla shares today than he did on Nov 8th.
Robert smith
Robert smith Jan 02, 2022 6:27PM ET
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all the articles I saw said alon had said he HAD sold his stock in Tsla -implying ALL of it, now they are saying he may not have sold ANY of it? Because according to THIS article he only said he was considering it, leaving himself wide open for having changed his mind and actually BOUGHT some at bottom after the near 50 percent dive he caused by leaking that news. I smell a rat, he HAD to know that OCt sales where going through the roof when he made everybody think something was going very wrong if he was dumping all his shares.
Steven Jacobs
Steven Jacobs Jan 02, 2022 6:27PM ET
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He said he would sell “10%” which he did. He also exercised tons of options so now he owns even more shares. Elon knows exactly what he’s doing at every moment. Those that doubt him or bet against him are the clear fools consistently
Ron Love
Ron Love Jan 02, 2022 6:27PM ET
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Robert smith He exercised his CEO compensation options. And he gets to buy them at $6.24 not matket price. Only thing market price determines is the capital gains tax he owes.
Mart Bab
Rubberduck1973 Jan 02, 2022 6:24PM ET
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The faster they produce the more they’ll have to call back for repairs
Tho Nguyen
Tho Nguyen Jan 02, 2022 6:24PM ET
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No risk no reward. Tesla is known to take risk. That’s why no one can catch up to Tesla
James Franigan
James Franigan Jan 02, 2022 5:38PM ET
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Oroginal meme stock, dusconnected from fundamentals and reality.
David TP
David TP Jan 02, 2022 5:38PM ET
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but Mary Barra thinks they are not worth mentioning.
Gastrointestinal and Liver Consultants
Gastrointestinal and Liver Consultants Jan 02, 2022 5:02PM ET
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Even if they sold ten times that number, Tesla will be overvalued by 100x
Rock on Rockall
Rock on Rockall Jan 02, 2022 5:02PM ET
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lay off the booze and get your liver checked.
Haroon Imtiaz
Haroon Imtiaz Jan 02, 2022 4:56PM ET
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This also means strong earnings number when they report. TSLA will hit 1400 by Jan31
Don Getty
Don Getty Jan 02, 2022 4:56PM ET
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6.8 million GM's sold and 9.5 million toyatos in 2020 - tesla is less that a drop in the ocean of vehicle sales
 
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