The demand for Tesla vehicles is soaring.

Tesla’s demand has always been a strength (TSLA -0.18 percent ). Orders for the company’s automobiles have consistently outpaced the company’s ability to provide them throughout most of its history. This was the case in 2021, and it appears that it will continue in 2022. Indeed, despite several price hikes for Tesla automobiles, there is evidence that demand is growing faster than production recently.

On Friday, the electric car website Electrek stated that “many Tesla models are now sold out until 2023.” This is confirmed by a brief look at the company’s website. New orders for the cheapest Model Y model in the United States are now expected to arrive between January and April 2023; base versions of the Model S are now expected to arrive between November 2022 and January 2023, and the most affordable Model X isn’t expected to arrive until April or July of next year. In fact, some variants of these vehicles will arrive sooner due to additional features and higher prices.

Model 3’s

Fortunately, the Model 3’s base model will still be available in 2022. Customers who order the car now, however, will not receive it until July or September, according to Tesla.
It’s not as if the output is in jeopardy. Tesla has previously stated that it ended the year with a robust production rate of 1.22 million vehicles per year in Q4. This was up from roughly one million per year at the conclusion of the previous quarter. As a result, it appears that production rates are improving. Furthermore, Tesla forecasted a 50 percent increase in full-year 2022 deliveries above 2021 levels, indicating that the company expects continued manufacturing improvements this year. When investors consider this background from management, as well as the increasing timelines for new vehicle deliveries, it appears that demand for Tesla’s vehicles is genuinely through the roof.

Tesla has recently been fairly upbeat about the demand story for its automobiles. Management stated in the company’s third-quarter 2021 quarterly report that there is a “structural shift” in electric vehicle (EV) demand as more Tesla vehicles are on the road and more Tesla owners are assisting others in seeing the potential of a fully electric vehicle.

Rising Demand For Tesla

In response to rising demand, Tesla stated in its fourth-quarter update that significantly boosting production would be a priority in 2022. It intends to accomplish this by increasing output at current operations in California and Shanghai, as well as bringing wholly new factories online in Austin and Berlin. Deliveries from the company’s new plant in Germany have only recently begun.
In its fourth-quarter letter, Tesla stated, “We believe competitiveness in the EV market will be defined by the ability to increase capacity across the supply chain and ramp production.” Despite the company’s best attempts to increase output, it appears that it is still unable to meet demand.

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