Thursday, March 23, 2023

Tesla to open new factories in 2021

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Tesla came close to meeting its goal of 500,000 vehicle deliveries for 2020, paving the way for a new year in which it expands in China and prepares to open new factories in Texas and Germany.

The electric carmaker said on Jan. 2 it turned over 180,570 vehicles in the last three months of the year, the most of any quarter, but just 450 vehicles less than the half-million than chief executive Elon Musk was looking for the year. You’re here increased production of its more mainstream models to meet growing global demand for battery-powered cars, with the 2020 total jumping 36% from the previous year.

“The good news is that Tesla has the formula that consumers are looking for,” Gene Munster, managing partner at Loup Ventures, wrote to customers. “The bad news is that to meet this demand, the company must quickly build new plants in Austin, Texas, and Brandenburg, Germany. Although they made things easy in Shanghai, ramping up production is difficult and will be one of Tesla’s most important topics in 2021. “

Musk and Tesla have had a remarkable year, with the company joining the S&P 500 Index in December after five straight quarters of earnings. Shares rose 743% in 2020, giving the automaker a market cap of $ 668.9 billion. Musk – who finished the year as the second richest person in the world – Twitter to congratulate his team, saying that in its early days he thought the automaker had only a 10% chance of surviving.

Tesla shares rose 5.2% to $ 742.55 at 9.47 a.m. in New York on Monday. The stock closed at a record $ 705.67 on December 31.

The quarterly delivery figure is widely regarded as a barometer of demand for Tesla vehicles and consumer interest in electric vehicles around the world. The company says its quarterly delivery reports should be viewed as slightly conservative, and the final numbers could vary 0.5% or more.

“Musk & Co. essentially hitting its 500km goal for the year is a major feather for the company and the Bulls as Tesla has seen strong demand for the Model 3 in the past 10 months despite headwinds from consumers of hurricane-type observed around the world “due to the Covid-19 pandemic, wrote Wedbush analyst Daniel Ives in a report.

‘Pass comfortably’

Tesla hadpredictedby January 2020 – before the onset of the coronavirus pandemic – it would “comfortably exceed” sales of half a million cars. The companysaidin October, he still expected to achieve this goal despite atemporary stopof his factories in the spring, and Musksuggestedit was on hand in an internal email sent to employees in December.

Analysts also predicted that Tesla would hit its sales target for the year, which further supported the company’s shares in the dying days of 2020. The ramp-up held up. multiple stock offers that could bring the automaker’s cash balance to around $ 20 billion.

The company exceeded the threshold of 181,000 vehicles it was expected to cross in the last quarter, a jump of 30% compared to the period July-September. Much of the push depended on increased production at its Chinese plant and higher production in the United States of the newest vehicle in its lineup, the Model Y.

Tesla said production of the Model Y in Shanghai has started and deliveries are expected to begin soon.

Although Tesla is clearly the global market leader, its vehicle deliveries are minimal compared to the millions of gasoline cars and trucks sold by established automakers such as General Motors Co. and Volkswagen AG. These two automakers and others are gearing up to flood the burgeoning electric vehicle market with dozens of battery-powered models over the next several years.

End Quarter Thrust

To capitalize on its lead, Tesla is building two new vehicle assembly operations – one outside Berlin which could potentially assemble up to 500,000 cars a year, and the other in Texas which will make the first pickup. up of the mark. Both are expected to start production later this year, joining its existing vehicle assembly facilities in Fremont, California and Shanghai.

Once known for its niche luxury models such as its Model S sedan and X sport utility vehicle, Tesla has broadened its appeal with the Model 3 and Y which start at under $ 50,000. Musk said in September that he planned to start sales of a $ 25,000 Tesla by 2023.

As usual, Tesla delivered numerous cars in the last days of the quarter. Musk offered an incentive in the last three days of the year, saying in aTweeterthat buyers would get three months of an optional driver assistance tool that Tesla calls full autonomous driving.

Danielle Watson, 31-year-old pharmacist, tweeted on Dec. 28, that she had just taken delivery of a Model Y. In a private message, the Greenville, SC resident said she had taken delivery in Charlotte, NC – a sign as the attraction of the power of the Tesla brand in the United States grew. far beyond its home state of California.

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