The primary quarter is often a delicate interval for Tesla (NASDAQ:TSLA). After the extreme year-end blitz of the fourth quarter, Tesla’s first quarters are usually fairly tempered. That’s, at the very least, till final week, when Tesla launched its first-quarter automobile manufacturing and supply numbers. The corporate revealed that it produced a complete of 180,338 autos and delivered a complete of 184,800 vehicles, soundly beating expectations.
This quantity is extremely spectacular, particularly if one considers the headwinds that Tesla faced during the quarter. In Q1, Tesla’s Mannequin S and Mannequin X traces within the Fremont manufacturing unit have been being upgraded to arrange for the refreshed variations of the flagship sedan and SUV. An ongoing chip scarcity that has affected the automotive business additionally offered its personal fair proportion of challenges for Tesla. FactSet consensus for Tesla’s Q1 supply numbers stood at about 162,000.
Tesla’s quarterly gross sales zoomed previous expectations, main Wedbush analyst Dan Ives to name the outcomes a “drop the mic” number. The Wedbush analyst famous that with its Q1 outcomes, Tesla has “but once more defied skeptics and bears” thanks partly to the energy of the Mannequin 3 and Mannequin Y’s gross sales. Since Wall Road was already bracing for the affect of the continued chip scarcity, the stellar Q1 outcomes have been a “large dwelling run for the bulls,” Ives defined.
On Sunday, the Wedbush analyst raised his price target for Tesla stock to $1,000 per share, up from his earlier $950, with a long-term bull-case value of $1,300 per share. Ives additionally upgraded the electrical automotive maker from a “Maintain” to an “Outperform.” Ives’ stance appears to be shared by buyers, as TSLA inventory was up over 7% on Monday’s pre-market.
With its formidable first-quarter numbers, Ives remarked that Tesla could possibly be on observe to ship greater than 850,000 autos this 12 months. “We now imagine Tesla might exceed 850k deliveries for the 12 months with 900k a stretch objective, regardless of the chip scarcity and varied provide chain points lingering throughout the auto sector,” he said, including that “eye-popping supply numbers popping out of China can’t be ignored with the trajectory on tempo to characterize ~40% of deliveries for Musk & Co. by 2022.”
Tesla shares are about 6.25% down year-to-date, however over the previous 12 months, TSLA has surged 628%.
Disclaimer: I’m lengthy TSLA.
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