Tesla announced that it reached its target by producing more than 500 thousand vehicles in 2020.
Electric car maker Tesla reported on Saturday that it produced more than half a million cars in 2020; This was a turning point that seemed unattainable just three years ago.
With the news bulletin published on its website, the company stated that it delivered 180,570 cars in the fourth quarter, thus reaching a total of 499,550 sales for 2020. This marks a new milestone for the electric car manufacturer.
The 2020 sales total represents a 36 percent increase over 2019. Tesla’s production of 509,737 cars in 2020 also increased 40 percent compared to 2019. This is the latest success for a company that continues to grow in 2020 despite the pandemic. While some automakers saw an increase in sales during the pandemic, none saw a rise as big as Tesla.
Even without a sales record, Tesla CEO Elon Musk had much to boast about – a bustling stock, new factories, and a series of profitable quarters.
Analysts had pointed to Tesla’s sales rise in recent weeks, citing signs of strong demand abroad.
“We believe that 190,000 to 200,000 could be reached in the fourth quarter, given the core strength we have gathered in China, as well as a late move in Europe and the US,” Wedbush analyst Dan Ives wrote in a note to investors.
Competition Will Heat
The startup automaker will likely face tougher competition in 2021. Ford Motor recently started delivering the Mustang Mach E electric sports car to customers. In addition, Rivian, a respected automobile startup, will begin selling an electric van and an SUV next summer. Several other automakers will join the fight.
Meanwhile, Tesla still faces its own challenges. Sales of the Model S luxury sedan and Model X SUV, their most profitable vehicles, fell and remained low. Federal safety regulators are also investigating suspension malfunctions in these vehicles. The company is also facing questions regarding the quality of its vehicles. Additionally, Tesla seems to have made little progress in Mr Musk’s ambitious promise to have one million driverless Teslas by the end of 2020. The company has not yet shown a driverless car to the world.
Still, the company reported profits for the past four quarters. Stocks were added to the S&P 500 index, and the stock price was lower than $ 100 at the end of 2019, and closed at over $ 700 last year. Investors value Tesla more than the combined market value of many major automakers, including Toyota Motor, Volkswagen, General Motors and Ford.
Tesla also increased production at a factory in China, the world’s largest market for traditional and electric cars, and this led to sales growth. The company also started building factories near Berlin and Austin, Texas. Musk plans to build Tesla’s pickup truck and a battery-powered truck in Texas, and said he recently moved to this state.