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Tesla Excels In 2020, Forecast to Deliver Over 1Mn EVs by 2022

Tesla Excels In 2020, Forecast to Deliver Over 1Mn EVs by 2022

Steven Benjamin, Anchor Research

Tesla achieved its new EV delivery milestone in 2020, despite the closure of its plant in California due to the state’s strict pandemic lockdown regulations, although it did ramp up production at its factory in China. Tesla has now reported profits in each of the past four quarters and in December the company joined the S&P 500 Index. The EV manufacturer’s production and sales last year were also driven by the launch of its Model Y mid-sized SUV. Tesla has started building factories near Berlin and Austin, Texas, where Musk plans to manufacture Tesla’s pickup truck and a battery-powered semi-truck.
 
In December, Wedbush analyst, Daniel Ives forecast that Tesla could deliver 1mn EVs by 2022 on the back of what he termed “eye-popping demand” from China. Ives wrote that the US could also experience an acceleration in EV adoption this year and beyond if US President Joe Biden’s administration increases EV credits. According to Ives, heading into 2021, “… we are seeing a major inflection of EV demand globally, with our expectations that EV vehicles ramp from 3% of total auto sales currently to 10% by 2025,". Wedbush believes the Greater China region could represent 40% of Tesla’s total EV deliveries by 2022, especially given “the current brisk pace of sales."
 
Regarding India, where Tesla does not have a presence yet, Ives contends the country is a “high priority” for Tesla. “The demand picture has changed and … with Giga 3 build out in China, Berlin and Austin, India is next,” he said, pointing to EV demand and India’s population growth as being indicative of a massive market. He projects that in five years India will represent 10% of overall demand for Tesla.
 
Tesla’s long-term aim has always been to manufacture EVs for the masses and last year co-Founder and CEO Elon Musk, now the world's second-richest person, said advances in battery technology meant it was looking at selling a $25,000 EV model in around three years' time.
 
Written exclusively for Moore South Africa by Steven Benjamin from Anchor Research.