News, Price Analysis, Stocks

Should Anyone Buy Tesla (TSLA) Stock Now?

The electric market has tumbled as market players shift attention from growth stocks to safe investment options. However, avoiding the EV industry might be a massive mistake. Moreover, ignoring Tesla’s (TSLA) lead within the market remains a depraved decision. Here is why you should consider investing in Tesla stock now.

Car Production & Deliveries Skyrocket

While younger companies in the EV markets try to strategize how to amplify production, Tesla’s car production levels remain high. For instance, the Musk’s firm manufactured 305,407 cars in the latest quarter, reflecting a 69% increase from one year ago. Moreover, the EV producer gets the vehicles to customers’ hands within no time, with deliveries hitting 310,048 during the quarter, 68% up Y/Y.

The numbers show record car production and deliveries, and the figures came when some production halted in China following COVID-related lockdowns.

Meanwhile, Rivian reveals producing 25,000 electric cars this year, lower than the 50,000 previous estimates, following supply chain problems. Also, Lucid Group missed its 200 manufacturing objective from the past 20,000 estimates, producing 13,000 due to similar reasons.

Also, some renowned automakers are finding transforming to producing EVs more challenging than anticipated. Recently, Toyota recalled its initial electric car mass-produces, 2,700 in total, within two months of launch. Such narratives show Tesla performing better in electric vehicle production.

Increasing Automotive Profit and Revenue

Tesla saw its automotive revenue surging quicker, hitting $16.9 billion during Q1, an 87% Y/Y surge. The uptick followed the firm’s stellar car delivery and production growth. Besides the sales increase, Tesla enjoys amplified profits from the deals. Automotive gross return gained 132% in Q1 to $5.5 billion. That saw non-GAAP net profit at record highs, exceeding $1B.

Car Production Might Be Even Better in 2022

Tesla’s remarkable quarter wasn’t a one-off thing. The company claims to have what it takes for a 60% increase in car production in 2022 compared to last year. Some optimism comes as Tesla’s Shanghai company will reopen following COVID-associated closures that curbed car production in 2021.

Moreover, Tesla’s new factories in Texas and Germany came online in April and March. Tesla still overcomes some production challenges from these plants, and recently Musk stated that the factories were losing billion following supply chain problems.

Meanwhile, the companies will likely increase their manufacturing output in 2022, and Tesla maintained its previous 60% increase in vehicle production in 2022.

Editorial credit: Nadezda Murmakova / shutterstock.com

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