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Tesla’s bumper deliveries brighten up stocks

Tesla Inc shares are set to open this year at their highest level in about a month Stronger-than-expected quarterly delivery report its Electric Car, allaying fears of supply chain woes that other automakers have struggled with.

Shares of the world’s most valuable automaker were up about 7% at $1,126.5 in pre-market trading.

“Q4 2021 manufacturing results should underpin expectations in 2022 but we believe that ultimately the rate of capacity expansion (Germany, Texas) will be,” said Joseph Spak, an analyst at RBC Capital Markets. greater determining factor”.

Spak revised its quarterly revenue estimate, up $2.3 billion. JP Morgan raised its profit estimate.

Tesla delivered 308,600 vehicles in the fourth quarter, well above analysts’ forecast of 263,026 vehicles.

The company, like others, faces a shortage of components, due to a global logistics crisis and factory closures due to limited supplies due to the pandemic. But Tesla overcame many of the problems by reprogramming the software to use fewer scarce chips.

Zachary Kirkhorn, Tesla’s chief financial officer, said in October it was difficult to predict how quickly the company would be able to ramp up production at its new factories.

Analysts are expecting new factories to start operating early this year, ramping up production and easing many supply constraints.

“Tesla continues to weather the chip supply crisis and has clearly beaten Shanghai at breakneck speed,” said Cowen analyst Jeffrey Osborne.

“We expect Berlin and Austin to experience gradual ramps up and anticipate those ramps to lead to a slowdown in exports from Shanghai, many of which have already been shipped to Europe in 2018,” Osborne said. 2021,” Osborne said.

During the quarter, Model 3 and Y output increased by 79%, but the output of key products Model WILL and X fell 19% largely due to production slowdown due to the company’s installation of new equipment.

(Reporting by Aniruddha Ghosh and Nivedita Balu in Bengaluru; Editing by Maju Samuel)

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