Photo: Ryan Chylinski, Erik Kuna, Tom Cross
In November, S&P Global announced that Tesla (NASDAQ: TSLA) would be added to the S&P 500 at the start of trading on December 21, despite the company being eligible for the first time in July. In the month from the S&P announcement to the close of trading on December 18, TSLA shares surged 70% to close at an all-time high of $695 per share. At the moment, the shares of the company are pulling back as they "settle down" after a crazy race before being included in the S&P. Nevertheless, there are still many events ahead that will continue to impact TSLA stock growth.
In a matter of days, we will know how many deliveries Tesla made in Q4 2020. Initially, the company guided to deliver 500,000 vehicles this year, and even despite the disruptions in the work of its factories in connection with COVID-19, Tesla later confirmed that it still intends to achieve this goal. In order to do so, the company must deliver 181,000 vehicles in Q4 2020. A number of analysts, investors, and those involved in tracking and forecasting Tesla deliveries suggest that this is very possible.
Tesla has already reported five profitable quarters in a row and, as of today, there is every reason to believe that in January 2021, the company will report another profitable quarter, which will be an excellent start for a truly great year ahead for Tesla.
All indications are that the mass production of the China-made Model Y has already begun, although early order holders are likely to receive their vehicles only in 2021. According to industry sources, Tesla at Giga Shanghai plans to produce 250,000 Model Ys in 2021, which will be a really huge breakthrough.
Apart from Model Y, Giga Shanghai continues to ramp up production, and we have already seen that the factory enter a new phase of expansion. It is likely that the new buildings will serve to further expand production capacity, and in 2021, according to industry sources, the factory intends to produce 300,000 Model 3s. Another equally important part of the development of Model 3 in China will be the further production of Model 3 for export.
By mid-2021, construction of the Giga Berlin Phase 1 will be completed, and the first made-in-Germany Model Y will begin rolling off the assembly line, gradually meeting the immense demand for Tesla's SUV in Europe.
Completion of Giga Texas Phase 1, which will produce the Model Y, is also slated for mid-2021. The commissioning of the new US plant will mark the next step in Tesla's development in the American market. Later in 2021, production of the highly anticipated steel Cybertruck and Semi will begin, which will take over two more segments of the automotive market.
As planned, Tesla will continue to expand its battery cell line at Fremont. During Battery Day, Tesla announced that its Roadrunner pilot line will be capable of producing about 10 GWh of batteries per year by 2021.
The gradual improvement of FSD, and the prospect of FSD as a subscription, could prove a major boost to income in 2021 and beyond. In accelerating the improvement of FSD, a huge role is played by Dojo--Tesla's supercomputer--which increases the speed and accuracy of training at least 10 times over the current computer. In November, Tesla CEO Elon Musk said Dojo should take about a year to develop and build before version 1.0 is released, which means it could be ready as early as next year.
Tesla Energy will be another integral part of the company's development in 2021. Interest in Tesla's energy products continues to grow, and the company is expanding into new markets where it even plans to become an energy service provider.
With further development, and a number of Tesla's achievements approaching, 2021 promises to be even crazier for the company's stock, which will certainly delight investors and those who believe in Tesla's success and mission.
© 2020, Eva Fox. All rights reserved.
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Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.
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.