Tesla Stock Looks Like a 2022 Winner After Its Q4 Delivery Beat


It’s a new year and companies are looking ahead as markets open for 2022. For some investors, the year is starting off on a positive note. One company that wasted no time taking off is Tesla (NASDAQ:TSLA), despite the turbulence it saw during the final month of 2021. While Tesla stock may have had a difficult final quarter, it turns out that the company delivered an impressive 308,600 vehicles during Q4, surpassing expectations.

The LinkedIn profile picture of Elon Musk, CEO of Tesla (TSLA)

Source: Pe3k / Shutterstock.com

This news starts the company off on a very positive note for a year that faces grim analyst predictions around the electric vehicle (EV) sector.

What’s Happening with Tesla Stock?

Tesla announced yesterday that it surpassed expectations for EV deliveries for the final quarter of 2021 and the stock wasted no time reacting positively when markets opened today. Within the first hour of trading, it has risen nearly 10%. And while it’s still early, shares show no signs of slowing down.

While Tesla stock began slipping following the Christmas holidays, this impressive surge has pushed it into the green by more than 6% for the past month. This should serve as an indication that Tesla is destined to maintain its place at the front of the EV race, even while facing what many expect to be a difficult year.

The Road Ahead

This wasn’t the only good news that Tesla had to report. A few days ago, InsideEVs reported that Giga Austin might also start production of the Model Y soon, citing a tweet from an industry insider with knowledge of the factory and its happenings.

All of this points toward a smooth road ahead as Tesla prepares to continue growing. It certainly bodes well that the company’s Q4 deliveries rose 70% year over year. Even more impressive is the fact the company’s total deliveries for the year finished at 936,172, a gain of roughly 87% from the 500,000 delivered in the previous year.

Many skeptics have voiced concerns regarding the chip shortage that posed constraints for the EV sector in 2021 and promises to do the same throughout 2022. What is quite impressive, though, is that Tesla pulled off these impressive delivery figures in spite of the shortage.

Wedbush Securities Analyst Dan Ives noted that “with the chip shortage a major overhang on the auto space and logistical issues globally these delivery numbers were jaw dropping.”

He’s certainly not wrong. It’s always worth noting when a company surpasses Wall Street expectations in this way, while facing both a supply chain shortage and grim analyst predictions. At the start of a new year, that’s big for Tesla stock.

The Bottom Line on TSLA

We shouldn’t forget that Tesla is also facing a new battery deal which will also provide a significant boost to the stock when it comes to pass.

Tesla bulls had cause enough for optimism before the Q4 delivery figures were announced, but now the 2022 case is stronger. If the company sees progress in self-driving tech in 2022, Tesla stock will take off even further. As of now, 2022 is looking like a good year.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

Article printed from InvestorPlace Media, https://investorplace.com/2022/01/tesla-stock-looks-like-a-2022-winner-after-its-q4-delivery-beat/.

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