Despite COVID-19, Tesla Runs Solo... Will the Rally Continue into the New Year?

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Despite the COVID-19 pandemic last year, the American electric vehicle company Tesla once again recorded its best performance. This achievement came at a time when the global automotive industry was severely impacted by the pandemic. As a result, there is growing interest in whether Tesla's stock price will continue its rally this year.

According to foreign media such as CNBC on the 3rd (local time), Tesla's vehicle deliveries in 2020 reached 499,550 units. This is a significant increase from the previous record of 367,500 units in 2019.

This figure exceeded market expectations, and production also surpassed 500,000 units for the first time ever.

Quarterly records were also the highest ever. In the 4th quarter, Tesla sold 180,570 units, surpassing the previous highest record of 139,300 units in the 3rd quarter of 2020.

Elon Musk, Tesla's CEO, celebrated on his Twitter, saying, "I am very proud that Tesla has achieved a major milestone."

Tesla's strong performance was also reflected in its stock price. At the beginning of 2020, Tesla's market capitalization was only $76 billion, but it increased ninefold over the past year, approaching $670 billion. This represents a 743% surge.

This is considered a remarkable achievement given that the automotive industry was hit hard by COVID-19 last year.

According to automotive market research firm LMC Automotive, global total vehicle demand in 2020 decreased by 14% compared to 2019.

Accordingly, there is growing interest in whether Tesla's stock price will continue its rally this year.

U.S.-based securities firm Wedbush forecasted that although electric vehicles accounted for only 3% of the global automotive market last year, this will increase to 10% by 2025, and Tesla is expected to remain strong.

Additionally, the fact that Tesla's Gigafactories in Shanghai, China, and Berlin, Germany, will begin full-scale production this year supports this outlook.

However, some critics point out that Tesla's market share is significantly lower compared to traditional automakers, arguing that Tesla's stock price is overvalued.

JP Morgan Research Center stated, "Tesla's target stock price is around $90, which is an 87% decline from the current level."

This content was produced with the assistance of AI translation services.