A huge key performance indicator for electric vehicle maker Tesla is its number of deliveries for a quarter. This is because it is used to weigh the depth of consumer demand as well as products that are most likely to have higher rates of turnover in the future. They are also used to determine or forecast the company’s financial position. In the fourth quarter of 2021, Tesla delivered 308,600 cars globally surpassing the estimates of analysts. The success in the fourth quarter follows a number of other milestones the company set in the just-concluded 2021. The company struck a deal with Hertz last year for the delivery of 100,000 vehicles and also hit the $1 trillion milestone.
Following the impressive results the company shared on Sunday, Tesla’s total sales for 2021 came into an accumulated figure of over 936,000 cars which is up 87 percent from 2020.
The expectation for Tesla’s fourth-quarter delivery from analysts was an average estimate of 263,000 and although some of these analysts changed their minds later in December and raised their estimates, Tesla’s deliveries still surpassed what they expected.
Following the announcement which came less than 24 hours ago, Tesla stock, which fell 1.3 per cent on December 31 and closed at $1,056.78, soared by almost 50 percent causing its market valuation to exceed $1 trillion. Tesla remains part of an elite league of US companies to have ever reached the $1 trillion milestone.
It is pertinent to know that the gains recorded by Tesla in the quarter and past consecutive quarters comes amid a global chip shortage and a period of recovery from the pandemic which have left other companies in the same line of business crippled or almost crippled.
Tesla says it expects a 50 percent annual increase in its deliveries over the next few years and the company’s boss Elon Musk has promised to provide an update on Tesla’s new product plans on the company’s next earnings call.
Tesla’s competition also continues to increase as the day goes by but that doesn’t seem to be a problem for Tesla as it has solidified its position in the booming electric vehicle market.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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