Tesla (NASDAQ: TSLA) had an impressive Q1 2021 delivery record, which Loup Ventures believes depicts a true growth story. Having more than doubled the deliveries of Q1 2020, Tesla demonstrated an acceleration of growth, which is rare for manufacturers.
In a note, Gene Munster and David Stokman of Loup Ventures wrote that Tesla appears to be entering into the slope of its growth S-curve. Analysts believe the reason this is happening is "a combination of consumer willingness to purchase EVs, along with Tesla's winning formula of vehicle performance and value."
The firm emphasizes that a signature signal of a growth company is an acceleration in growth. However, such a phenomenon is rare because, over time, this step becomes more and more difficult to take. Loup Ventures unveiled a chart showing the acceleration in Tesla deliveries growth over the past six quarters, with 23% delivery growth in Q4 2019 climbing to 109% in the most recent quarter. Due to pandemic shutdowns, results in Q2 2020 should be taken in context.
According to the firm, what is happening is the combination of consumer readiness for EVs, along with Tesla's value proposition. In Q1 2021, Tesla experienced a 109% increase in deliveries, which is especially impressive given that there were a lot of headwinds for the company this quarter.
- Model S and X deliveries dropped to 2k because of the model refresh. Normally S and X deliveries are around 15k per quarter.
- Some US buyers, which accounted for about 50% of the company’s revenue in Q4 2020, likely delayed purchasing in anticipation of a potential $7,000 Tesla EV tax credit as part of President Biden’s infrastructure plan. A $7,000 credit is a measurable factor to take into account, as it would represent an 18% discount on a typical Model 3 purchase.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.