The Simple Bull Case for Tesla Stock
When Tesla (NASDAQ: TSLA) hosted a conference call to discuss its fourth-quarter earnings, Wall Street and the media seemed largely fixated on a few flashy headlines: the delay of the launch of new vehicles and the shelving of the aspiration to bring to market a lower-cost Tesla vehicle at some point in the future. But there was also one key takeaway during the call that arguably makes a strong bull case for the stock: the electric-car maker expects deliveries to grow at or above 50% in 2022 -- during a year in which the auto industry is facing significant supply chain disruption. Even more, Tesla chief financial officer Zach Kirkhorn said he thinks this could be achieved even if the company's two new factories fail to come online.
Such an optimistic forecast at a time of significant global supply chain uncertainty makes a great case for the company's ability to execute and reinforce its leadership position in the electric-vehicle market -- just as electric car adoption seems to be hitting a tipping point.
Earlier this month, Germany government officials gave Tesla a thumbs up to start production at its new factory near Berlin. The approval came after months of delays. While the automaker can't immediately start production at the factory following the approval due to a public objection period and inspections that must take place, it certainly gets the company closer to starting commercial production at a plant that is essentially already finished.
Source Fool.com
