“Tesla Inc. delivered a record number of vehicles in the first quarter,” WSJ writes.
Why It Matters: It’s a notable accomplishment on two levels. Tesla’s position among electric vehicle providers remains solidified in an industry that is growing more competitive each day. It’s also just impressive considering all the challenges that have fallen on the global auto industry of late, like a chip shortage and supply-chain issues.
Numbers To Consider:
- Tesla completed around 184,800 deliveries in the first three months of 2021, more than doubling its numbers from the year-ago period. Deliveries improved by roughly 2% from the preceding, year-end quarter.
- Tesla notched a profitable year, its first in company history, with close to 500,000 vehicles delivered in 2020. Elon Musk and Co. haven’t released specific guidance but unofficially expect that mark to possibly grow more than 50% this year.
- Established auto brands like Ford and Volkswagen are turning up the heat on Tesla, as their own “all-electric vehicles are making inroads in key markets.”
- Like many others, Tesla is fighting the semiconductor issues plaguing the world. It shut down its Fremont factory briefly in February due to part shortages.
The Takeaway: “The strong delivery numbers are poised to underpin what Wall Streets expects to be robust first-quarter earnings for Tesla, due in a few weeks. Sales are expected to top $10 billion, helping generate around $470 million in profit, according to a FactSet survey of analysts before the latest delivery figures were posted.”
- Two things to watch are whether Tesla can deliver its highly anticipated pickup and semitrailer trucks and how the company responds to increased regulatory scrutiny.
Don’t bet against Elon. It’s really hard to argue that Tesla will continue to knock it out of the park in terms of sales and popularity. The only question that we are left with is the valuation of $TSLA stock.
For me, it’s not that I don’t want to own $TSLA, it’s what’s the right entry and exit price. I believe the company will compound its financials over the next two decades. But a lot of that growth is baked in if we buy in closer to $1,000 per share (today).
I think the stock looks interesting in the mid $600s but it’s not currently screaming at me yet. If we see the stock go another 10-20% lower, I think, as a Tesla fanboy, it will look very enticing.