Tesla produced a record-setting number of vehicles in 2021, crushing its previous best and demonstrating an exponential growth rate over the last two years. This is incredible progress in the face of significant challenges that every automaker has been forced to address in the past year. The global pandemic has wreaked havoc on supply chain logistics and production, leading to a worldwide shortage of chips that modern vehicles rely upon for nearly every aspect of automobile technology. A car in 2021 depends on semiconductors to operate intelligently and efficiently, from headlights to engine timing and even entertainment systems.
After a brief period of doubt, Tesla is on fire again after CEO Elon Musk sold some shares. The sell-off was soon followed by exercising stock options that would have otherwise been lost, resulting in a net gain with Musk owning more shares of Tesla than before. The Tesla CEO is known to be a showman and didn't pass up an opportunity to stir up some controversy by posting a Twitter poll asking whether 10-percent of the Tesla stock should be sold to pay taxes. About 58-percent voted in favor of that proposal.
Beyond Elon Musk's bluster, Tesla excels at producing electric vehicles with enough excitement generated and follow-through to force the entire automotive industry to join in. The early buzz was interesting, but what really sold the concept was delivering on promises made, and Tesla fulfillment was way up in 2021. With 936,172 cars delivered in 2021, Tesla nearly doubled its 2020 record of 499,550 vehicles. Tesla is among the newest automakers and the fastest growing. That combination demands flexibility, and Tesla adapts to change at lightning speed. While traditional car manufacturers have struggled to roll with the punches of the pandemic, Tesla simply redirected and sped along with apparent ease.
Tesla's Production Machine
Tesla started 2020 slowly, then deliveries surged in the third quarter of 2020, climbing 54-percent over the previous quarter. The fourth quarter continued the frantic pace with a 30-percent increase over the third quarter. Growth slowed at the beginning of 2021 but didn't falter, with several customers receiving their key cards continuing to rise in the first and second quarters. Another third and fourth quarter push moved Tesla well beyond analysts' estimates, impressing the market and generating happy customers and more goodwill.
Tesla's year-over-year deliveries climbed by 87-percent in 2021, despite some steep price increases over the year. The company did this while advancing its battery technology, rolling out several software updates, and significantly refining its Full Self-Driving system. So it seems that even a triple-whammy of the global chip shortage, pandemic delays, and rapidly increasing competition can't slow Tesla's roll.