Tesla sales increased 87% during 2021

Although I don't tend to talk about investments here on LeaseCosts, this topic is a perfect mid-point between the auto industry and the investment one. Robb Arnot, a prestigious American entrepreneur, mentioned on the Rational Reminder podcast that: 

How extravagant to your growth assumptions have to be to justify the price? Extravagant to the point of implausibility. Tesla, if you assume 50% annualized growth for the next 10 years, 50, then 50, then 50, then 50 compounding. You get to 55 times today.

Amazon grew at 26% a year. That’s enough to give it 11 times the size that it was 10 years ago. Now that is extravagant growth. That is phenomenal. But you’re assuming at 50% growth that Tesla will have five times the ten-year growth of Amazon.

Well, thing is that Tesla just announced sales in 2021 were up by 87% compared to the previous year and "Musk said in October last year (2020) that Tesla will be able to maintain an annual growth rate of more than 50% for “quite a while.”

Kudos to the Tesla team for doing this in 2021. This past year has been tough for the automotive industry and I have to say I’m shocked with those results with all the supply chain challenges. If Tesla managed to come ahead in such a challenging environment, I can’t imagine how well they could come ahead in the future.

Either way, I guess that’s all already priced in! Congrats Tesla! 

About the author

Jorge Diaz is a passionate car lover, winter driver & Software Engineer. For the last 10 years, he has built Online Solutions used by more than 5,000 companies across the globe. He founded LeaseCosts in 2016 with the purpose of simplifying and helping Canadians to better understand the complex market of car leasing in Canada. You can connect with him at Leantrepreneurship.com.

Jorge is also the author of Car Leasing Done Right: A Canadian Guide for Understanding & Optimizing Vehicle Leasing Costs, released on Nov. 5th, 2021. It is available at Amazon.ca