Last week, Tesla reported record shipments of its electric vehicles in the first quarter of 2020. Today, shares are up 7.7% in premarket.
A total of 180,338 electric vehicles were produced. Delivery reached a record 184,800 vehicles, up from 168,000 that Wall Street expected. In annual terms, shipments increased by 109%.
Most of the delivery fell on Model 3 and Model Y – 182,780 vehicles (+ 140% YoY). Shipments of the S and X models have all but stopped as Tesla unveiled new versions of the vehicles and production is still in its early stages.
Model Y was likely the main catalyst for Tesla’s car sales growth during the quarter. Tesla first began producing Model Y at its China plant in Q4 2020.
Now the company has enough production capacity to fulfill its annual plan of 750 thousand cars, and the current results only confirm this.
Wedbush analyst Daniel Ives raised his Tesla rating. The company’s target was also raised – from $ 950 to $ 1000.
“Tesla could surpass 850,000 shipments a year with a prospect of 900,000 units, despite chip shortages and various supply chain problems persisting in the automotive sector. However, we cannot ignore the eye–popping shipping figures from China, as they will account for roughly 40% of Musk & Co’s shipments by 2022, ”Ives said Sunday.
Since the beginning of the year, Tesla shares have lost 6.2% and gained 587% over the past year.