Tuesday's Headlines: Tesla Crushes Deliveries

Tuesday's Headlines: Tesla Crushes Deliveries

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

StoneCo (STNE) +14.6%

Tesla Motors (TSLA) +13.5%

IMAX (IMAX) +6.1%

Nordstrom (JWN) +6.0%

Ford Motor Company (F) +4.8%

Moving Down ⬇️

Atlassian (TEAM) -8.1%

Datadog (DDOG) -8.0%

Bill.com (BILL) -6.3%

Upstart Holdings (UPST) -4.4%

IDEXX Laboratories (IDXX) -4.2%

1. Tesla (TSLA) far surpassed delivery estimates for its most recent quarter, producing more than 40,000 more cars than was expected by analysts. The company produced 308,600 vehicles in Q4 v.s. 267,000 expected, and a total of 936,172 vehicles were produced in 2021 v.s 897,000 estimated. This ramp in deliveries — predominantly attributable to Model 3 sales — displays 85% year-over-year (YoY) growth. It’s only the beginning of Musk’s ambitions, however, with the CEO reportedly setting a target to scale production capacity to 20 million units per year by 2031. Analysts have raised estimates in line with this news for Tesla’s upcoming Q4 results and with the addition of a gigafactory in Texas, and the European addition Giga Berlin, Tesla expects to deliver 1.3 million vehicles for 2022. Read the full press release here.

2. Despite Tesla's success, industry dinosaur Ford (F) was the best-performing auto stock of 2021, fueled by its turnaround story. Investors have come back around to Ford given its restructuring; adding Jim Farley as CEO, and putting focus on electric vehicles (EVs) aiming to improve profit margins. Ford is playing catch-up with companies like Tesla, but with a legacy brand, a cash pile to invest, and global production facilities, Ford will ramp production considerably in the coming years to become a worthy competitor. Considering the demand for the Mach-E and the F-150 Lightning has led to Ford putting a temporary halt on orders, it’s making the right moves. Even with its own plans ahead, Ford has a 10% stake (approx $10 billion) in its direct competitor Rivian, which was the first to market with its electric pickup truck in 2021, so the company still stands to benefit, despite being late to the game. Read more here.

3. Apple (AAPL) is the first company in history to reach a $3 trillion market capitalization. It was mainly Big Tech that propped up the market gains in 2021, and Apple was among the group of outliers. In periods of uncertainty amid pandemic, inflation, and growth stock valuation concerns, many investors flocked to mega-cap names with brand recognition and reliable sales as a safe haven. But Apple — unsurprisingly — showed tremendous growth as well. It saw 29% year-over-year revenue growth in Q3 of last year and Apple is estimated to have sold 27 million pairs of AirPods during the 2021 holiday season. Its Services segment has also become increasingly relevant growing revenues by 26% YoY, a branch one analyst now values at circa $1.5 trillion alone, with the company now setting its sights on the metaverse to expand further. Read the full story here.

David GranahanDavid Granahan