Tesla had a strong first quarter of 2022, setting a new all-time record for deliveries and beating the previous peak.
Tesla stated earlier today that it manufactured over 305,000 vehicles and delivered over 310,000 vehicles in the first quarter of 2022, despite continued supply chain problems and production shutdowns.
Tesla will release its fiscal results for the first quarter of 2022 after the market closes on Wednesday, April 20, 2022.
Tesla produced more all-electric vehicles in the first quarter than any of the twelve analysts polled by Bloomberg yesterday. According to estimates, Tesla would deliver 309,158 automobiles globally from its three operational manufacturing locations. Tesla's Model S, 3, X, and Y are now manufactured in Fremont, California. Internationally, Tesla's Shanghai factory manufactures the Model 3 and Model Y, while its newest unit in Germany, known as Gigafactory Berlin, manufactures the Model Y.
Tesla Model 3 and Model Y car deliveries accounted for 95 percent, or 295,324, of total deliveries in the first quarter of 2022, according to Tesla. Tesla manufactured 14,218 Model S and X automobiles and delivered 14,724. The total number of cars manufactured and delivered was 305,407 and 310,048 respectively.
The automaker cited "ongoing supply chain problems and facility shutdowns" for producing 4,641 fewer cars than it shipped during the quarter.
According to FactSet projections as of March 31, analysts predicted 317,000 car deliveries in the first three months of 2022. The forecasts varied from a low of 278,000 to a high of 357,000 car deliveries.
Tesla shipped 184,800 electric vehicles and built 180,338 units over the same period last year.
Despite a sluggish automobile industry, Tesla defied all expectations and achieved significant year-over-year growth. Tesla experienced a 93.2 percent increase in car sales during this time period, while the other major manufacturers all experienced losses of at least 5.9 percent. suffered a significant loss of 27.6 percent, GM suffered a loss of 16.5 percent, and Volkswagen suffered the greatest loss of 44.3 percent.
Despite rising vehicle costs owing to "inflation pressure," Tesla reported a strong first-quarter performance. Elon Musk, CEO of Tesla, stated that both Tesla and SpaceX were suffering from the effects of inflation, which would affect the cost of their products. Tesla raised the prices of its automobiles by up to $12,500, but buyers were unable to resist. Indeed, as a result of rising gasoline prices, Tesla reported a 100 percent increase in order volume in some areas of the United States.
For the first time in its history, Tesla is on track to deliver 1,000,000 automobiles in a single year. With over 936,000 deliveries between Fremont and Shanghai in 2021, Tesla is almost one-third of the way there in 2022. With Gigafactory Berlin starting deliveries and Gigafactory Texas getting closer to turning over its first cars to customers, Tesla is well-positioned to deliver 1,000,000 vehicles with the four operating factories. However, there may be some unanticipated complications linked to production halts since the Shanghai facility took a temporary break from manufacturing activities. The company was scheduled to resume production on April 2.
Deliveries are the closest approximation to Tesla's reported sales figures. On March 22, the firm held a ribbon-cutting event to commemorate the opening of a new facility in Brandenburg, Germany. On April 7, Tesla plans to hold a grand opening and "cyber rodeo" event at another new vehicle assembly factory it is developing in Austin, Texas. Tesla formally relocated its headquarters to Austin on December 1, although it continues to run its first electric car manufacturing facility in Fremont, California.
As a result of the Ukraine conflict, gas prices are likely to increase, boosting demand for electric cars. However, economists say that a scarcity of inventory and increased vehicle pricing would limit sales.
After Musk warned the US electric automaker was suffering from considerable inflationary pressure in raw materials and logistics as a result of Russia's invasion of Ukraine, Tesla hiked prices in China and the United States in March.
"Impressive (delivery) given all the challenges," said Gene Munster, managing partner at Loup Ventures, who added that Tesla will continue to outpace other manufacturers in terms of sales growth.
Colin Langan, an auto analyst at Wells Fargo, told Yahoo! Finance in January 2022 that he was a little short of Tesla's projection of 50% growth.
I'm a little short of their 50% growth prediction. By the second half of the year, I expect it to be difficult. It's possible that they won't be tested if there isn't enough up semi supply for them to produce 50% growth. "
He went on to say that he doubted Tesla's ability to sell cars, and his model mirrored that sentiment. Morgan Stanley was also worried, particularly about Giga Berlin. Tesla, on the other hand, has proven itself once again, and once Giga Austin begins production, Tesla will have four facilities producing entirely electric automobiles throughout the world.
In October, Musk said that Shanghai had surpassed the production of the company's original facility in Fremont, California. Because production at Tesla's new facilities is projected to ramp up slowly in their first year, the two factories are key to the company's objective of increasing deliveries by 50% this year.
Tesla began shipping cars built at its Gruenheide, Germany, facility in March, and deliveries of cars made at its Austin, Texas, plant are expected to begin soon.
Tesla's stock jumped after the firm said this week that it would seek investor permission to expand its share count in order to allow for a stock split. So far this year, Tesla's stock has climbed around 3%, while GM and Ford's stock have fallen.
Tesla's operations were hampered globally during the quarter, which ended March 31, by a COVID spike and new health regulations in China, which necessitated temporary production halts at its Shanghai factory. Tesla delivered 308,600 electric vehicles in the fourth quarter, a new high for the firm.
Tesla, like the rest of the car industry, has been harmed by widespread parts shortages and rising prices. After Russia invaded Ukraine in February, critical components like semiconductors are still in limited supply, and prices for raw materials like nickel and aluminum have risen. Tesla has been keeping consumers waiting for months in the United States before fulfilling their automobile purchases.
According to some analysts, Tesla might sell 2 million vehicles in 2022, now that a facility near Berlin has begun producing the Model Y for European consumers, posing a threat to German carmakers that now dominate the luxury market. Tesla sells many more electric vehicles than any other automaker, and battery-powered vehicles are outpacing all other vehicle categories. As fuel costs rise and remain high, sales of those automobiles may rise much more. According to Wall Street, Tesla's $1 trillion market cap indicates that it is on course to dominate the industry, too.
Tesla intends to split its stock in order to pay a stock dividend to investors.
According to a filing with the Securities and Exchange Commission, Tesla, Inc. the electric vehicle manufacturer will request at its annual shareholders meeting to split its stock so that it may pay a stock dividend to stockholders. For the second time in two years, the corporation is seeking its shareholders' approval to split its stock.
This split would take the form of a dividend, with stockholders receiving more shares. Shareholders would essentially get a special dividend of extra shares for each share they already possess. The majority of dividends are paid in cash to investors. Stock dividends are significantly more similar to stock splits than cash dividends. The electric vehicle manufacturer did not specify how many shares investors would receive. Its previous split in August 2020 awarded stockholders five shares for every share owned.
A stock dividend is a dividend paid to shareholders in the form of extra business shares rather than cash. Dividends have no effect on a company's worth, but they dilute its share price. In other words, if there is a 6-for-1 split, investors will get a stock dividend of five shares for every share of Tesla they own. This would be a one-time occurrence.
The date of this year's shareholders meeting, at which the proposal will be voted on, has yet to be announced. Therefore, the timing of the Tesla split remains unknown. The shareholders' meeting was conducted on October 7 last year.
Stock splits do not have a significant impact on a company's value. However, by lowering the price at which shareholders must pay to purchase a single share, they may actually raise demand and therefore the price. When Tesla announced its first stock split in August 2020, it was a 5 to 1 deal. At this moment, it's unclear what kind of split would be suggested for shareholders. The annual meeting of Tesla is normally held in June.
Tesla's stock rose 12.6 percent on the day that its last five-for-one split went into effect. Since then, the stock has more than doubled in value. However, the split occurred in the midst of Tesla's record run, which saw the stock rise 743 percent in 2020.
“Given how well the stock has performed since the previous split, "given how well the stock has performed since the previous split,” said Dan Ives, a Wedbush Securities tech analyst.
Tesla is still a small company compared to other well-known automakers. However, Tesla's quick development the firm expects yearly sales to soar by 50% or more and the expectation that the company would profit from an industry-wide move away from internal combustion engines and toward electric vehicles have spurred remarkable market value gains. Tesla's stock has risen 1884 percent through Friday's closing since October 2019, when the company went from a string of quarterly losses to an unexpected profit. Tesla is currently worth more than the total market capitalization of the world's top 13 manufacturers.
Wedbush Securities analyst Dan Ives has approved the fresh split plan. "We regard Tesla's plan to join the likes of Amazon, Google, and Apple in commencing its second stock split in two years as a wise strategic move that will be a positive driver for shares moving ahead," he said.
In theory, a stock split should not cause shares to rise prior to the split because the company's value has not changed. However, there are other hypotheses as to why a stock split could increase its value. For one thing, if the shares were cheaper, more individual investors would be able to purchase and own shares of the stock, broadening the base of ownership.
Another hypothesis is that when a stock divides, such as when Tesla's stock splits, it is more readily added to various indexes such as the S&P 500 or Nasdaq 100, resulting in more shares being acquired by fund managers who model their portfolios on these indexes. Another idea holds that lower share prices enable lower option pricing in the thriving derivatives market, where retail traders and the Wall Street Bets community are active participants.
When stocks split, the markets quickly react, adjusting the stock price so that investors have the same total amount of value despite holding additional shares, each of which is less valuable. However, whether the same holds true for stock dividends is dependent on the market's efficiency. If the market reacts precisely to changes in supply, prices should adjust proportionately, making a stock dividend equivalent to a tiny stock split, with no actual value flowing to investors, unlike a cash dividend. However, if the market reacts differently to a smaller increase in share supply than to a bigger rise in share supply, owners may be better off. It will be interesting to see if these stock dividends genuinely assist investors.
Tesla acknowledged in a tweet earlier Monday that it was seeking authorization from shareholders to split the stock