Is it possible that a CEO’s email to staff has convinced Wall Street analysts that Tesla would have a slow Q4 and underwhelming 2021?
People are now questioning where analysts went wrong with their predictions after Tesla announced their busiest final quarter and most amount of deliveries in a year.
According to Pierre Ferragu from New Street Research:
“Street is slow and has a cautious bias, nobody wants to look like a fool, bullish on deliveries,”
Adding to this, the analyst explained in a report from Barron’s:
“Street did react to Elon’s email about not rushing end of Q4 deliveries, remained cautious and missed monster deliveries in China that went public only last week,”
Feraragu is talking about an email that Musk sent to Tesla employees in late November, which suggested that the automaker would soon cease its famous Q4 delivery rushes.
Tesla has usually asked anybody who could assist the firm to improve its Q4 and annual delivery figures to come to delivery centers or showrooms to speed up the whole process. In previous years, it had resulted in some extremely impressive quarters, finishing the year immensely. However, Musk took a different approach this year, and Wall Street may have underestimated Tesla’s team even with a more laid-back and cost-efficient delivery system for this year.
Analysts missed Tesla’s fourth-quarter results by a long shot, predicting only 266,000 deliveries. According to Tesla’s most recent press release, it delivered 308,600 automobiles in the just-ended quarter which was 16% more than the analyst predictions. When releasing Q3 2021 consensus expectations in previous quarters, analysts were only off by half that amount and analysts were only 3% incorrect when projecting quarterly results for Q4 2020.
After performing so much better than the forecast, Tesla’s stock rose dramatically. Tesla stock was up $108.61, or 10.28%, at the time of writing, trading at around $1,165.