• 266
  • 42
  • 2

How Will Tesla Stock Do in 2022?

Barrons2021-12-31

Tesla’s fourth-quarter delivery figures, expected shortly after the world rings in the New Year, are likely to be the first 2022 data point investors can use to assess the outlook for the stock. People who are bullish on the electric-vehicle maker expect a lot.

Tesla (ticker: TSLA) typically discloses its delivery figures on the second day of a quarter, regardless of weekends. That means the fourth-quarter numbers are likely to land on Sunday, Jan. 2. though it is possible they could arrive Monday because of the New Year holiday.

The Wall Street consensus, according to FactSet, calls for 267,000 vehicle deliveries. That would be a record and up from the 241,300 delivered in the third quarter of 2020. The Wall Street consensus figure aggregated by Tesla itself calls for about 266,000 deliveries.

The company will need to do better than that to keep the stock moving higher because the not-so-secret secret about Wall Street estimates is that they tend to be low. Investors, companies, and analysts all feel better when companies beat estimates.

The so-called whisper number for fourth-quarter Tesla deliveries is probably somewhere between 275,000 and 285,000 units. A number in that range would be a good outcome, while anything higher would be excellent.

If the numbers are strong, it typically means good things for the stock going into the release of Tesla’s earnings. Tesla shares have outperformed the S&P 500 seven of the past nine times in the span between when management reports deliveries and discloses the quarterly earnings. The financial results come about three or four weeks after the delivery numbers.

Tesla needs to deliver 272,650 vehicles to hit 900,000 for all of 2021. That would be quite an accomplishment, given that Tesla delivered about 500,000 vehicles in 2020.

In 2022, Wall Street is currently projecting deliveries of about 1.42 million vehicles, including 296,000 in the first quarter. That would amount to another year of big growth. Tesla has two new manufacturing facilities, in Texas and Germany, that will be ramping up production early in 2022. The ability for Tesla to sell all that is coming out of its factories will be a big swing factor for the stock in 2022.

The stock did just fine in 2021 after rising 743% in 2022. As of Thursday, Tesla stock was up more than 50% in 2021, far better than the comparable returns of the S&P 500 and Dow Jones Industrial Average.

It has been another profitable, yet wild, year for Tesla investors. Tesla stock was at $1,070.34 as of the close of trading on Thursday. The stock’s 52-week low was back in March at less than $540.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment42

  • soulestis
    ·2022-01-02
    Like pls
    Reply
    Report
  • Frosty4ever
    ·2022-01-01
    $TSLA stock climbed a total of 49.76% this year (2021), finishing at $1,056.78! 📈🚀🔥 https://t.co/lUW7gK21Up
    Reply
    Report
  • CCLaunty
    ·2022-01-01
    Hopefully Tesla can do well 
    Reply
    Report
  • Yao_feng
    ·2022-01-01
    hao
    Reply
    Report
  • nanehz07
    ·2022-01-01
    Like
    Reply
    Report
  • BKT
    ·2022-01-01
    Good. Pls like thanks.
    Reply
    Report
  • SimplicityB
    ·2021-12-31
    If there are more cars being recalled, this will affect the confidence level in using their cars. Hope that their models are well tested for safety before launching new models
    Reply
    Report
  • Dex2021
    ·2021-12-31
    Like
    Reply
    Report
  • JC888
    ·2021-12-31
    Think the news article by Barron did NOT take into considerations the  475,000 Telsa model 3 and model S recalled due to safety hazards.  With consistent quality issue, will Telsa share still continue to rise ?  Would you continue to pour money into this ?
    Reply
    Report
    Fold Replies
    • MeowTamara
      exactly, details matters and they are very subjectives
      2021-12-31
      Reply
      Report
    • tig2021
      ok
      2022-01-02
      Reply
      Report
    • haircut
      need to improve quality
      2022-01-01
      Reply
      Report
  • PS153
    ·2021-12-31
    up to the sky
    Reply
    Report
  • Francislch
    ·2021-12-31
    🚀
    Reply
    Report
  • Jasminephyo
    ·2021-12-31
    Ok
    Reply
    Report
  • Kindryl
    ·2021-12-31
    Tesla will do well into 2022!
    Reply
    Report
  • Prost
    ·2021-12-31
    will grow stronger in the coming years 
    Reply
    Report
  • Patek1975
    ·2021-12-31
    Tesla to the moon [Cool] [Miser] 
    Reply
    Report
  • Kel9670ong
    ·2021-12-31
    Hopefully it will do as good or better
    Reply
    Report
  • Cecilia1
    ·2021-12-31
    Happy 2022! To $1.8k! - HUAT ah!
    Reply
    Report
  • Alvin1975
    ·2021-12-31
    To the moon!!!
    Reply
    Report
    Fold Replies
  • LHC0511
    ·2021-12-31
    Likely not as bullish like 2021
    Reply
    Report
 
 
 
 

Most Discussed

 
 
 
 
 

7x24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email:uservice@ttm.financial