Tesla (TSLA) rises with the first trade after announcing its delivery results, which gave the market three days to digest.
A new bull run is in sight.
Tesla announced its delivery and production results last Friday, confirming that it had delivered a record of more than 184,000 vehicles.
It was significantly higher than most analysts expected, but we could not see the impact on Tesla’s share as it was Good Friday and the markets were closed.
Tesla starts today with as much as 8% in pre-market trading, adding $ 50 billion to the electricity manufacturer’s market capitalization.
Wall Street, which clearly underestimated Tesla this quarter, is also digesting the results today, and one top analyst views the record deliveries as a critical moment.
Dan Ives, an analyst at Wedbush, which is also one of the best analysts on Wall Street based on TipRanks’ rankings, told customers in a new comment that the tide was turning for Tesla’s shares:
“Although the EV sector and Tesla shares have been under significant pressure so far this year, we believe the tide is turning and that delivery figures from China cannot be ignored,”
Tesla’s share (TSLA) has underperformed compared to some peers in the industry, which has been somewhat scarce over the years.
Companies like Volkswagen and GM have seen their shares rise this year based on their electrification plans, but the delivery figures show that Tesla still dominates in some key markets, such as China, as Ives mentioned.
In announcing the results, Tesla noted that it ‘encouraged by the strong reception of the Model Y“In China, the carmaker is not dividing delivery by market, but China is expected to have contributed significantly to Tesla’s record deliveries this quarter.
China is increasingly becoming a critical market for electric car manufacturers, and Tesla has dominated the Model 3 since last year.
Now it can do the same with the Model Y.
The Q1 2021 delivery results have led Ives to increase its delivery estimate for Tesla this year to 850,000 to 900,000 vehicles:
“The 1Q delivery figures released on Friday were a paradigm shift and show that the pent-up demand worldwide for Tesla’s Model 3 / Y is reaching its next growth stage as part of a global green tidal wave that is underway. We now believe that Tesla can exceed 850,000 deliveries for the year with a stretch goal of 900,000, despite the scarcity of chips and various issues in the supply chain that remain in the automotive sector.
Wedbush holds a $ 1,000 price target on Tesla’s share, which represents a healthy 30% rise.
But this prediction can be seen as conservative, as many people believe that Tesla could achieve more than 1 million deliveries in 2021.
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