NAGA : Why Could 2022 Be a Good Year for Tesla?

Electric cars continue their boom, and Tesla reflects it very well at the moment, with its increasing market share figures. Traditional car manufacturers, on the other hand, have reacted too late and are now trying to make up for their mistake with great commitment. But so far, Tesla has been ahead of the game.

Impressive 2021 results

In the full year of 2021, Tesla sold 936,000 cars, just barely missing the 1 million mark. As a result, sales grew by 87% within a year.

Also, just a few days ago, a new quarterly record for deliveries of 308,600 vehicles was reported, which exceeded the preliminary estimates by 15%.

In the final three months of 2021, Tesla produced almost 308,600 vehicles. That's almost as much as in all of 2019, when the company made around 365,000 cars.

Will 2022 be even better?

Analysts are currently expecting an average annual profit of just under $9 billion for Tesla in 2022. If the company's share price stays on the current levels, the price-earnings ratio (P / E) of Tesla shares would drop to around 100. Then the share would look almost cheap in the context of sales and profit growth.

The current production rate at the Tesla's Fremont and Shanghai plants is alone enough to produce well over 1.2 million cars this year. That would correspond to growth of 31.5% compared to 2021.

Plus, the imminent opening of the new Gigafactories in Berlin and Texas, coupled with further potential in the existing factories, should allow Tesla to generate well over 1.4 million produced cars in the new year. The new factories are designed for a production rate of 500,000 vehicles each and Tesla will use a lot of new technologies in manufacturing. But even with only 100,000 units each from Germany and Texas, annual production could rise to 1,423,000 cars - a growth of 57% compared to 2021. Demand is currently extremely strong and growing rapidly, which is why it should not be a problem selling this amount.

There are some obstacles, too

Most recently, Tesla shares suffered from Elon Musk's announced share sale. He previously had it voted on Twitter. Elon Musk has no salary and almost all of his fortune is invested in Tesla. The sale of around 10% of its shares has now largely been completed, from which the share will also benefit. But Tesla is currently being held back by two developments:

• Firstly, Tesla pays a price for the very rapid expansion. In the USA, the company has to recall around 356,000 Model 3s (year of construction: 2017 to 2020) to the workshops due to a possible rear-view camera failure.
• Secondly, the competition is doing everything in its power to catch up technically and in terms of sales. For example, Daimler announced an electric car (Vision EQXX) with a range of 1,000 km at the American CES trade fair. The battery is only about half the size and 30% lighter than the EQS. The E-car manufacturer NIO also wants to cover around 1,000 km with the ET7 in the future with just one battery charge.

So, where's $TSLA headed?

As of now, the coming year seems to be intact and promising regarding Tesla's stock, if we look at the fundamental and long term drivers of the company.

Plus, it's important to consider what investors think about an asset, because in today's economy, it's often more important than the actual value of a company. $TSLA has a market cap of roughly $1 billion, whereas in the case of $AAPL, it has soared over $3 billion, hence investors might think $TSLA has a lot of room for growth, relative to other companies which have higher market caps.

Disclaimer: This information is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration for your personal investment objectives, financial circumstances, or needs.