Tesla Stock Closer To Fresh Record On Earnings

Tesla stock traded above $1,200 a share early Tuesday, putting it close to its all-time high of $1,243.49. As the stock rises, it soared by double digits on Monday, expect more debate about how to value shares of the EV leader.

Wall Street, for its part, appears to believe the stock (ticker: TSLA) is worth roughly 100 times Tesla’s per-share earnings. That is about 10 times more valuable than stocks of traditional auto makers, but it seems about right, based on one valuation methodology.

Tesla’s ability to design components in-house gave the automaker agility in making tweaks to parts and coping with supply chain problems that hit other automakers much harder.

Tesla boosted its deliveries by 87% to a record high in 2021, pushing its shares up over 13% on Monday. Tesla told some customers they could take vehicle delivery with some missing parts, such as Bluetooth chips and USB ports. Tesla also removed some features such as radar sensors and lumbar support for front passenger seats, which made the car less complicated to build.

Tesla also increased vehicle prices to address higher costs, including expedite costs for parts. American consumers have to wait for seven months if they order a Model Y version, whose prices went up 18% last year.

Chief Executive Elon Musk said Tesla was also able to substitute alternative chips for some that were in short supply. Tesla designs more hardware and writes more software than many rivals, which rely on auto suppliers. Musk has called the company “absurdly vertically integrated compared to other auto companies”.

Ford shares continued to surge on Tuesday amid high demand for its upcoming electric pickup, extending a solid run after rising 140% last year and beating out the likes of Elon Musk’s Tesla.

Ford reiterated Tuesday that it is “committed to leading the electric vehicle revolution” and will invest more than $30 billion into the industry through 2025 as it looks to take on pioneers like Tesla.

Ford was the auto industry’s top stock last year, jumping roughly 140% and beating out larger rival General Motors and electric vehicle maker Tesla, which gained 41% and 50%, respectively.

After shares of Ford surged on Tuesday, the company’s valuation passed that of legacy auto rival General Motors ($95 billion) and electric vehicle startup Rivian ($91 billion).

Electric car maker Tesla added to the momentum with its shares rising over 13% after the company said it delivered 308,600 vehicles in the fourth quarter, above expectations.