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Keep on Buying Tesla Stock, Says Analyst After Q4 Delivery Blowout.
Stock Analysis & Ideas

Keep on Buying Tesla Stock, Says Analyst After Q4 Delivery Blowout.

The year has kicked off in the best possible way for Tesla (TSLA). Giving any supply chain/chip shortage issues short shrift, the EV leader blew the estimates out of the water with its 4Q21 deliveries.

Tesla delivered a record 308,600 units, beating 3Q21’s haul of 241,300, and coming in well above the Street’s expectation of 267,000.

The strong performance on account of a robust showing for Model 3/Y sales, which reached 297,000. The Street had expected 252,000. All in all, the company produced 306,000 vehicles during the quarter.

Looking at the full-year figures, Tesla delivered 936,000 vehicles in 2021, far higher than the 900,000 best case scenario the Street had in mind and amounting to an 87% increase on 2020’s numbers.

“This was a ‘trophy case’ quarter for Musk & Co. with massive momentum moving into 2022,” said Tesla bull, Wedbush’s Daniel Ives. “Taking a step back, with the chip shortage a major overhang on the auto space and logistical issues globally these delivery numbers were ‘jaw dropping’ and speaks to an EV demand trajectory that looks robust for Tesla heading into 2022.”

Ives estimates 200,000 of these deliveries took place in December alone. While Tesla doesn’t break down sales by region, the 5-star analyst thinks “China demand was a standout this quarter.”

Ives thinks it is getting increasingly hard for the bears to “poke holes” in the Tesla story, and its success should also result in improving “broader sentiment” for the EV space in general.

Yet, despite rising competition, as evidenced by the results, Tesla remains the dominant force in the space.  

While Ives has a bull case price target of $1,800, he currently sticks with a base case price target of $1,400, suggesting shares have room for 20% growth in the year ahead. No need to add, Ives’ rating stays an Outperform (i.e., Buy). (To watch Ives’ track record, click here)

Overall, it’s mostly Buys for TSLA stock amongst Ives’ colleagues – 13, in fact – although with an additional 8 Holds and 5 Sells, the stock has a Moderate Buy consensus rating. That said, most seem to think the shares are currently overvalued; going by the $1030.08 average target, they will shed ~11% of their value over the coming months. (See Tesla stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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