The stocks of Tesla Inc. rose on Monday after the EV maker posted record first-quarter deliveries that boosted investors’ confidence and showed that the company could power its way through disruptions, including its factory shutdown in Shanghai.
Increased shipment of Tesla cars
The shares of Tesla gained 1.8% on Monday in the pre-trading market after the electric car manufacturer said during the weekend that it had shipped 310,048 cars over the last three months. This was 900 vehicles more than the average estimates made by the analysts and compiled by Bloomberg data. A new record was set despite the supply chain snarls caused by the Covid 19 virus and rules to stop its spreading.
According to the email, which Bloomberg reviewed, the complications continued and intensified on Sunday. Tesla’s Shanghai factory would remain closed on Monday. Tesla asked its employees to stay at home and abide by orders of the community in the Chinese city where 25 million citizens are under the phased lockdowns. Since mid-March, production at the plant has been intermittent.
As of now, investors are betting on CEO Musk’s push to make more cars with its new Berlin factory just opened another one in Austin, Texas, to start production from April 7, making it four factories in total for Tesla. The fourth quarter was exceptionally tough for Tesla, and Musk praised the suppliers and workers.
In a note written by Dan Ives, leading team of analysts at Wedbush, he said that the deliveries by Tesla had been better than feared. The analyst believes that 20,000- 25,000 units were pushed to quarter two from Quarter 1 due to logistical issues. This makes the underlying demand look strong for 2022 with a strong trajectory.
The largest market for Tesla is the China and U.S. markets, and the bulk of these sales came from the Model Y crossover and 3 Sedan. The Y and three models, along with the older X crossover and S sedan, are made by Tesla in its Fremont, California factory. Shanghai manufactures Y and three models, while the Berlin factory has just commenced its Y model deliveries.
Out of every four luxury sedans sold in the U.S., one is a Tesla model 3. The Model 3 is the fourth largest selling luxury sedan in China, as noted by Alexander Potter, an analyst with Piper Sandler. This is a remarkable achievement for Tesla, given those other European carmakers, such as the Audi. BMW and Mercedes-Benz were untouchable in China before.
