What happened
Shares of Tesla (TSLA -2.04%) 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 most recent 10-Q filing notes, "During the first quarter of 2021, the operational milestone of annualized revenue of $55 billion became probable of being achieved..." For some context on Tesla's current estimated sales trajectory, the average analyst estimate calls for 2020 revenue 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.
Editor's note: A previous version of this article stated that the operational milestone of annualized revenue of $55 billion was probable for 2021. But Tesla did not state a timeframe in its 10-Q and simply stated that its operational milestone of annualized revenue of $55 billion was now probable. The author regrets this error.
