What happened
Shares of Tesla (NASDAQ: TSLA) spiked higher on Friday, rising as much as 5.7%. By the time the market closed, however, the stock was up 4.8%. The stock's gain impressively came as the overall market declined sharply. The Nasdaq Composite, for instance, fell 0.85%.
Shares of the growth stock are likely up due to a couple of items circulating on Twitter that indicate the company may be having a better 2021 than some analysts are planning for.
Image source: Tesla.
So what
As a Barron's article pointed out earlier today, New Street analyst Pierre Ferragu noted on Twitter that STMicroelectronics -- a Tesla supplier -- expects sales of its silicon carbide to reach $550 million this year. This implies Tesla may be ordering enough silicon carbide to support production of 1 million vehicles this year, according to Ferragu's estimates.
In addition, some have pointed out on Twitter that Tesla's 10-Q filing notes that Tesla's board of directors has deemed CEO Elon Musk's operational award for achieving annualized revenue of $55 billion this year as "probable." The current consensus analyst estimate only calls for revenue this year of about $50 billion.
Now what
Tesla has remained somewhat vague about its expectations for 2021 vehicle deliveries, only saying that it expects total deliveries this year to grow by a rate greater than 50% year over year. But after blowout first-quarter deliveries and given the company's rapidly increasing production and its record quarterly vehicle orders in Q1, it's starting to look like Tesla can grow its deliveries at a significantly greater rate than 50% year over year in 2021.
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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool owns shares of and recommends Tesla and Twitter. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
