Tesla's deliveries are 'impressive': Roth Capital's Craig Irwin

Craig Irwin, Roth Capital Partners, joins 'Closing Bell' to discuss Tesla's rise and its fourth quarter deliveries, which beat expectations. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi 

Tesla on Sunday said it delivered 308,600 electric vehicles in the fourth quarter of 2021, beating its previous single-quarter record as well as analysts’ expectations. The automaker produced 305,840 fully electric vehicles total during the same period.

For the full year, Tesla delivered 936,172 vehicles, an 87% increase versus 2020 when it reported its first annual profit on deliveries of 499,647.

In the third quarter of 2021, vehicle deliveries reached 241,300, Tesla’s previous best quarter.

According to a consensus compiled by FactSet, Wall Street analysts had anticipated Tesla deliveries of 267,000 in the fourth quarter and 897,000 for all of 2021.

Deliveries are the closest approximation of sales reported by CEO Elon Musk’s electric car company.

Tesla combines delivery numbers for its higher-priced Model S and X vehicles, and lower-priced Model 3 and Y vehicles. The company does not break out sales or production numbers by region.

Deliveries of its flagship Model S sedan and Model X falcon wing SUV represented just under 3% of Tesla’s total deliveries in 2021. Model 3 and Model Y deliveries amounted to 296,850 in the final quarter of 2021, and 911,208 for the full year.

Tesla makes Model 3 and Model Y vehicles at its factory in Shanghai and in Fremont, California, but only produces the Model X and S in Fremont.

Shrugging off shortages

At Tesla’s 2021 annual shareholder meeting, Musk bemoaned a year marked by supply chain problems that made it difficult to obtain enough microchips and other unspecified parts.

Throughout the second year of a global coronavirus pandemic, Tesla was able to increase vehicle deliveries by ramping up production at its first overseas factory in Shanghai, and by making technical changes to the cars that it produces in Fremont, California, so that it could ditch some parts altogether.

Notably, Tesla announced in May that it was removing radar sensors from Model 3 and Model Y vehicles built for customers in North America. Those cars now rely on a camera-based system to enable Tesla’s driver assistance features such as traffic-adjusted cruise control or automatic lane-keeping.

Looking ahead

Musk has proclaimed that he wants to increase Tesla’s vehicle sales volume to 20 million annually over the next nine years. In pursuit of that growth, Tesla is poised to start production of the Model Y crossover at its new factory in Austin, Texas, this year. It aims to open another factory in Brandenburg, Germany, after that.

The company recently moved its headquarters to Texas. The CEO announced the plan in October, and Tesla made it official in early December.

Last month, Musk wrote on Twitter, where he has about 68.4 million followers, “Giga Texas is a $10B+ investment over time, generating at least 20k direct & 100k indirect jobs.” According to public filings, Tesla plans to spend $1.6 billion on the Austin, Texas, factory in its first phase now underway.

Despite progress and ambitions in Texas, Tesla has delayed plans to start high-volume production of its Cybertruck, a distinctly angular pickup, until 2023. The company’s Semi and revamped Roadster are still in the works, too.

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