What shortage of chips? Tesla achieves record fourth quarter and full-year sales

The strong fourth quarter of 308,600 vehicles gave Tesla annual sales of 936,000, up 87% from the 2020 total, and above the 900,000 mark that had been the target set by de many analysts.

“Taking a step back, with the chip shortage being a major surplus to the automotive space and logistics issues globally, those delivery numbers were to die for,” said Dan Ives, analyst for Wedbush Securities, in a statement. note to customers on Sunday. He said Wall Street’s forecast of 265,000 Tesla sales in the fourth quarter would have brought annual sales to 892,000. The 900,000 sales target Tesla easily achieved was a “better number in the eyes of the street.” , according to Ives.

Other automakers are all expected to report lower fourth-quarter sales when they release U.S. figures next week. Tesla reports only global sales, but across the industry, global auto sales are expected to be significantly lower in the fourth quarter.

Cox Automotive predicts overall fourth quarter US sales to be down 24% due to computer chip shortage that has caused factories to be temporarily closed, limited vehicle inventory at dealerships and driven up car prices at record highs.

“The industry ran out of vehicles and sales stagnated in the second half of the year,” said Charlie Chesbrough, chief economist at Cox Automotive. “Total sales in the second half of 2021 were the slowest of a decade. Demand is healthy, but supply and production disruptions have controlled the industry. You can’t sell what you don’t have not.”

Tesla had its own chip shortage issues during the year, but was able to handle them. The electric vehicle maker’s achievement was more impressive given that it faces increased competition from traditional automakers now offering more models of electric vehicles.
For example, the Ford Mustang Mach-E sold nearly 25,000 vehicles in the United States through November in its first year on the market. Ford recently announced plans to triple production to meet demand. There are also new auto makers exclusively for electric vehicles now selling vehicles, including Lucid and Rivian, both of which recently won MotorTrend Car and Truck of the Year honors.

So while Telsa’s share of the electric vehicle market may decline somewhat in the face of new competition, the demand for electric vehicles is growing even faster, allowing Tesla to continue to experience strong growth.

“While there are many competitors in the electric vehicle arena, Tesla continues to dominate the market share, as evidenced again this quarter while battling the chip shortage,” Ives said.

Tesla predicted that with new factories near Austin, Texas and Berlin poised to start full-scale production in 2022, it is expected to have annual global sales growth of 50% or more for at least the next few years. coming years.

Investors rewarded Tesla by raising its share price by 52% in 2021. While this was modest compared to the 743% share gains made in 2020, it was still better than most automakers, including including most of the other companies exclusively dedicated to electric vehicles. And it was enough to give Tesla a market value greater than the combined value of the world’s 12 largest automakers, and make it the sixth company to be worth more than $ 1,000 billion.

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