Tesla Inc. (NASDAQ: TSLA) recently announced that it delivered 180,570 electric vehicles (EVs) in the fourth quarter, beating its previous record of 139,300 in the third quarter. For the full year, the company’s vehicle deliveries came in at 499,550, just shy of 500,000 it previously expected. However, 2020 total deliveries represented a surge of 36 percent from 2019 and easily surpassed analysts’ average estimate of 481,261. Moreover, it also showed strong demand for TSLA vehicles despite the pandemic.
Initially, it was difficult for Tesla
After achieving the milestone, Musk stated in a tweet, “So proud of the Tesla team for achieving this major milestone! At the start of Tesla, I thought we had (optimistically) a 10% chance of surviving at all.”
Musk said in a shareholder meeting last year that TSLA would deliver vehicles in the range of 477,750 and 514,500 in 2020. Nevertheless, the Q4 and FY 2020 deliveries indicate a strong year-over-growth for the company. The growth was mainly driven by improved vehicle production capacity and partnership with new battery suppliers.
The EV market is growing at a rapid pace. IHS Markit projected that EV sales will account for 10.2 percent, or 9.4 million of the total vehicles’ sales worldwide in 2024. Tesla is expected to benefit from the booming EV market, though it will also face increasing competition as established and new rivals launch their EV models.
Revenue for the quarter came in at $8.77, as compared to analysts’ average estimate of $8.28 billion. Speaking to analysts in a call, Musk called the quarter the best so far in the history of the company.
An analyst projected 2021 sales between 0.84 million to 1 million during the earnings call. Musk responded by saying that TSLA is expected to report sales around that range, while CFO Zach Kirkhorn said the company will provide 2021 outlook when it reports Q4 results.
Analysts have mixed views about Tesla stock. For instance, JPMorgan analysts have an “Underweight” rating for the stock, with a price target of just $90 per share, representing a drop of more than 80 percent from the stock’s current trading price. Contrarily, Goldman Sachs has a “Neutral” rating for TSLA with a price target of $780 per share.
Overall, the consensus price target for Tesla