Tesla (TSLA) is growing in the first trade after releasing its delivery results, which the market had three days to digest.
A new bull run is in sight.
Last Friday, Tesla released its delivery and production results – confirming that it delivered a record of more than 184,000 vehicles.
It was significantly higher than most analysts’ expectations, but we were unable to see the impact on Tesla’s shares as it was Good Friday and the markets were closed.
Today, Tesla is opening up to 8% in the pre-market – adding $ 50 billion to the electric carmaker’s market capitalization.
Wall Street, which clearly underestimated Tesla this quarter, is also digesting the results today, and one of the top analysts sees record deliveries as a critical moment.
Dan Ives, a Wedbush analyst who is also one of the top rated analysts on Wall Street based on TipRanks ratings, published a new note to customers saying that the tide is turning for Tesla shares:
“Although the EV sector and Tesla’s shares have been under significant pressure so far this year, we believe the tide is changing and the surprising delivery numbers from China cannot be ignored”
Tesla shares (TSLA) have performed poorly compared to some competitors in the industry, which has been rare over the years.
Companies like Volkswagen and GM have seen their stocks soar this year with the strength of their electrification plans, but delivery numbers show that Tesla is still dominating in some important markets, such as China, as mentioned by Ives.
In disclosing the results, Tesla noted that they were “encouraged by the strong reception of Model Y“in China. The automaker does not analyze deliveries by market, but China is expected to have contributed a lot to Tesla’s delivery record this quarter.
China is increasingly becoming a critical market for electric car makers and Tesla has dominated there with the Model 3 since last year.
Now he could be doing the same with Model Y.
The delivery results for the first quarter of 2021 led Ives to increase its delivery estimate for Tesla this year to 850,000 to 900,000 vehicles:
“The 1Q delivery numbers released on Friday were a paradigm shift and show that globally repressed demand for Tesla’s Model 3 / Y is reaching its next stage of growth as part of an ongoing global green tidal wave. We now believe that Tesla could exceed 850,000 deliveries for the year, with an expansion target of 900,000, despite chip shortages and several persistent supply chain problems across the automotive sector.
Wedbush has a price target of $ 1,000 for Tesla shares, which represents a healthy increase of 30%.
But that 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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