After rewarding investors with an over 700% return in 2020 or 900% return from 52-week lows, Tesla (NASDAQ:TSLA) is poised for more upside. The company will attract more buyers after the S&P 500 included it in the index.
500,000 Unit Deliveries in Q4
Tesla posted deliveries of 499,550 for 2020. With a 509,737 unit production in that time, this implies a very low inventory on hand. The electric vehicle leader benefited from most unit sales coming from the affordable Model 3 and Model Y. Although the media criticized the Model Y for quality issues, albeit mostly cosmetic, the negative coverage did not deter buyers.
Looking ahead, investors may look closely at Tesla’s net income and cash flow results when it reports fourth-quarter earnings. EV stocks roared higher last year. For example, Li Auto (NASDAQ:LI) and Nio (NYSE:NIO) rose sharply. Still, Tesla is widely held and has brand name recognition. Its models are synonymous with EVs. And because premium brands like Audi, Mercedes-Benz, and BMW continue to fail in bringing a competitive EV model, Tesla’s sales will flourish.
Investors who missed out on Tesla should look elsewhere. Early Tesla investors need not sell the shares, either. This year, Tesla stock has every reason to continue its uptrend.
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