After reporting stronger-than-expected quarterly deliveries of its electric cars, Tesla's shares were set to open this year at their highest in roughly a month, assuaging fears about supply chain difficulties that have plagued other automakers.
In premarket trade, shares of the world's most valuable carmaker were up roughly 7% to $1,126.5.
"Q4 2021 production numbers should boost 2022 forecasts," said Joseph Spak, an analyst at RBC Capital Markets. "However, we believe the rate of capacity additions (Germany, Texas) will ultimately be the major factors," he said.
Spak raised his sales forecast for the quarter by $2.3 billion. J.P. Morgan has increased its earnings forecasts.
In the fourth quarter, Tesla delivered 308,600 vehicles, above analyst expectations of 263,026 units.
Component shortages, as well as a global logistical crisis and plant closures due to the pandemic's limited supply, challenge the corporation, as do others. Tesla, on the other hand, was able to solve many of the issues by retraining software to use less rare chips.
Tesla's finance head, Zachary Kirkhorn, stated in October that it was difficult to forecast how quickly the firm will be able to ramp up production at its new plants.
Analysts expect additional facilities to open early this year, allowing production to ramp up and supply concerns to be alleviated.
"Tesla continues to ignore the chip supply shortage and has definitely ramped up Shanghai at a breakneck pace," said Cowen analyst Jeffrey Osborne.
"We predict a steady ramp of Berlin and Austin, and we expect those ramps to lead to a reduction of Shanghai exports in 2021, many of which were intended for Europe," Osborne said.
Model 3 and Y production increased by 79% in the quarter, but Model S and X production declined by 19%, owing to a production delay as the business installed new equipment.