Tesla An Auto Stock Buy On Promising Data

Tesla Stock Could See Strong Momentum in 2022

Tesla stock (NASDAQ: TSLA) is in a buy zone, with a 13.53% gap higher on the first day of trading for the new year. Tesla stock closed at $1199.78 Monday, up $143 in greater-than-usual trading volume. The stock got a boost after releasing unit sales data for the fourth quarter and the full year of 2021.

On Sunday, the EV company said it delivered 308,600 vehicles worldwide in the quarter, ahead of analyst expectations for 263,000 vehicles. For the full year, Tesla delivered 936,000 vehicles, up 87% over 2020.

Tesla, on Sunday, announced that it delivered 308,600 vehicles around the world in the first quarter of 2021, exceeding market expectations for 263,000 units. Tesla manufactured 936,000 automobiles last year, up 87% from a year earlier.

In an interview with Yahoo Finance, Wedbush Securities analyst Dan Ives called the quarter a "jaw-dropper," and declared that the firm is positioned for strong growth in 2022.

On December 19, Ives raised his price target on Tesla to between $1,100 to $1,400, describing the stock as "outperform."

Tesla was producing its own chips in a year when other manufacturers were suffering from semiconductor shortages, which proved to be an important benefit. Tesla added, “Our electrical and firmware engineering teams remain hard at work designing, developing and validating 19 new variants of controllers in response to ongoing semiconductor shortages.”

In 2021, Tesla stock brought a return of 49.76% . Its market capitalization is currently $1.2049 trillion, joining Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOGL) , and Amazon (NASDAQ: AMZN) as the only U.S.-listed stocks whose value exceeds $1 trillion.

The stock created a double bottom base with a buy point of $1201.95. Shares rallied as high as $1201.07 in Monday's trading session.If you follow a stringent definition of passing a buy point, you may wait until Tesla shares reach $1202; however, considering not only the strong sales momentum but also investor optimism, I believe that Tesla is purchaseable at this time. Even if the stock tumbles in the days ahead, it appears to be on track to rise in the coming months..

However, Tesla was not the largest electric vehicle gainer in 2021, nor the greatest-gaining automaker.

In late July, the formerly private Lucid Group (NASDAQ: LCID) merged with SPAC Churchill Capital to become a public company. When rumors about the tie-up circulated in mid-January, SPAC shares began climbing. On February 23, when the merger was officially announced, shares fell nearly 39% on news of the deal's official completion.

In the last three months, Lucid's stock shares have rallied 66.31%. Since its IPO on July 26, the share price has risen 53 %.

Investors may also take a closer look at Lucid, which has potential as well. However, it isn't in a buy zone right now because it's been consolidating for the past several weeks. The luxury vehicle, the Lucid Air, was selected MotorTrend Car of the Year for 2022. On Monday, Green Car Reports dubbed the Air "the Best Car to Buy in 2022."

On Monday, shares of Lucid stock rose 7.57 percent to close at $40.93 in light trading.

Tesla has already taken more than 17,000 orders and expects to produce around 20,000 cars this year, with production increasing at the company's Arizona manufacturing facility.

It should not come as a surprise to anyone at this point, that one of the negatives is a charging network that’s not as built-out as Tesla’s.

When it comes to the most successful big automaker stock in 2021, Ford Motor stock (NYSE: F), takes home that title, with a return of 137.43 % for the year.

Despite the fact that revenue has been falling as a result of the pandemic, Ford is pushing ahead in the electric vehicle race with its all-electric Ford Mustang. The electric Mustang isn't your typical muscle car. Sales have been good so far, and this year, Ford intends to release an electric version of its famous F-150 pickup truck.

The stock began 2022 at a higher price, rising 4.81 percent to $21.77 by the end of the year. It's been more than 20 years since it was last in this area. Ford stock is presently in a buy zone, having exceeded its 50-day line in December.

Tesla stock, nevertheless, has momentum. It's less of a proven firm than a smaller stock like Lucid stock because of its trading history and market capitalization. While Ford stock appears encouraging, Tesla's vehicle delivery figures make it a more enticing purchase right now.

Tesla is a member of the Entrepreneur Index, which tracks some of the world's largest publicly traded companies founded and run by entrepreneurs.

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