The second quarter of 2021 was not an easy one for Tesla (NASDAQ:TSLA), with the company dealing with several headwinds from both its own operations and the global supply chain. Despite this, Tesla posted record deliveries once more, highlighting the fact that the company’s growth story is in the slope of its growth S-curve.
According to longtime Tesla bull Gene Munster of Loup Ventures, Tesla’s second-quarter deliveries is evidence of a true growth story. Even if one were to exclude the year-over-year tailwinds that the company enjoyed in the quarter due to Q2 2020 being held back by the pandemic, the fact that Tesla was able to deliver 201k vehicles is impressive.
$TSLA delivery numbers are further evidence the company's entering the growth segment of its S-Curve.
— Gene Munster (@munster_gene) July 2, 2021
Loup Ventures noted that a signal of a true growth company is an acceleration in growth. This is a challenging metric, but it is one that Tesla has so far been meeting. In the December 2019 quarter, Tesla exhibited a 23% delivery growth, and in the most recent quarter, this number has risen to 122%. Munster outlined his observations in the following section. “In plain English, something bigger is going on, which we believe is the combination of consumer readiness for EVs, along with Tesla’s value proposition,” Munster wrote.
In a tweet following Tesla’s release of its second-quarter vehicle production and delivery report, Elon Musk commended the company’s workers for breaking records despite the “many challenges” of the past quarter. These headwinds are likely the ongoing chip shortage, which has adversely affected the auto industry, and the delays in the delivery of the Model S Plaid, which only started last month.
The venture capital firm, however, noted that the headwinds from the Model S and Model X in Q2 would likely be addressed in the coming quarters, particularly as Tesla’s production of the two flagship vehicles gets optimized. “For the second consecutive quarter, Model S and X deliveries were about 2k due to the ongoing model refresh. Normally S and X deliveries are around 15k per quarter. We expect S and X deliveries to rebound in the September quarter,” Loup Ventures wrote.