Sunday, April 04, 2021 8:17:26 PM
Tesla Inc.’s estimate-smashing deliveries of electric vehicles in the first quarter suggest boss Elon Musk’s bet on growth in China and Europe is starting to pay off.
ADVERTISING
The results marked a strong start to a year in which Musk, the company’s chief executive officer, is counting on global operations to help scale-up production and sales. Palo Alto, California-based Tesla delivered 184,800 cars worldwide in the year’s first three months, trouncing the 169,850 average estimate in a Bloomberg survey of analysts and beating the fourth-quarter figure by about 4,000 vehicles.
The quarter was “a massive home run in the eyes of the bulls,” Dan Ives at Wedbush wrote in a research note Friday. “We believe China and Europe were particularly robust this quarter as the trajectory now puts Musk & Co. to exceed 850k for the year which is well ahead of whisper expectations.”
Expert insight into the future of cars
Get Bloomberg.com's automotive industry newsletter
Sign Up
Bloomberg may send me offers and promotions.
By submitting my information, I agree to the Privacy Policy and Terms of Service.
More from
Hyperdrive
The Next Electric-Car Battery Champion Could Be European
Tesla Appeals Labor Agency Ruling It Bullied Union Activists
Rivian Will Go Where Even Tesla Doesn’t Dare
Nikola Founder Sold 3.5 Million Shares at $13.89 Each
Musk is pushing into China -- already the world’s largest automotive market, including for EVs -- to gain a foothold amid competition from local electric-vehicle startups as well as Volkswagen AG. Auto sales are forecast to rise in the nation this year for the first time since 2017, and in March Premier Li Keqiang told the National People’s Congress the government will help boost the number of EV charging stations and battery-swapping facilities.
Tesla’s volume stands apart from most other automakers, who mainly are showing declines in part because of electronic-chip constraints, analysts at Jefferies said in a research note. “Shares should respond well to the Q1 delivery data.”
After a remarkable run in 2020 that saw its stock price surge by more than 700%, Tesla’s shares fell roughly 6% this year through April 1. Friday was a market holiday in the U.S.
“It’s been a brutal sell-off for Tesla and EVs, but we believe that will now be in the rear view mirror,” wrote Ives, who maintained a “neutral” rating on the shares.
‘Strong Reception’
Tesla recently refreshed the Model S sedan and the X, an SUV. No Model S and X vehicles were made in the quarter, and only 2,000 were delivered in total.
“We are encouraged by the strong reception of the Model Y in China and are quickly progressing to full production capacity,” Tesla said in a statement. The new Model S and Model X have also been “exceptionally well-received,” the company said, adding that it’s in the early stages of ramping production.
Tesla currently makes the Model S and X only at its factory in Fremont, California, and the smaller Model 3 and Y both there and at its plant in Shanghai. It plans to build two more factories this year, one in Texas and another near Berlin. The company doesn’t break out sales by geography, but the U.S. and China are its largest markets and nearly all the sales were of the Model 3 and Y.
With production at the Fremont factory temporarily shutting in February over parts supply issues, Tesla’s higher-margin Shanghai plant will account for a bigger share of volume in the quarter, which should support profitability, Jefferies said in the note.
Chief Financial Officer Zachary Kirkhorn warned in January that production would be low due to the transition to the revamped products, while the global semiconductor shortage and delays at ports were also expected to weigh on the quarter.
Tesla said its delivery count should be viewed as slightly conservative and final numbers could vary by as much as 0.5% or more.
The quarterly delivery figure is widely seen as a barometer of demand for both Tesla’s vehicles and consumer interest in electric vehicles worldwide as legacy automakers roll out electric cars of their own.
Recent TSLA News
- U.S. Stocks Finish Lackluster Session Little Changed • IH Market News • 04/24/2024 08:33:00 PM
- Block Innovates Bitcoin Mining, DOJ Proposes 3-Year Prison for Changpeng Zhao, and More Crypto News • IH Market News • 04/24/2024 05:50:55 PM
- Upbeat Earnings News May Lead To Extended Rebound On Wall Street • IH Market News • 04/24/2024 01:09:05 PM
- U.S. Futures Display Mixed Results Amid Earnings, WTI and Brent Crude Prices Dip in June Futures Trading • IH Market News • 04/24/2024 11:31:20 AM
- Tesla Surges 12% with 2025 Affordable Vehicle Promise, Evotec Slumps 36% on Uncertain Outlook, and Latest Earnings • IH Market News • 04/24/2024 11:29:58 AM
- Coca-Cola and Microsoft Sign Billion-Dollar Agreement, Apple Event Set for May 7, and More News • IH Market News • 04/24/2024 11:28:02 AM
- Stocks Close On Firm Note For 2nd Straight Day On Earnings Hopes • IH Market News • 04/23/2024 09:00:38 PM
- Tesla Releases First Quarter 2024 Financial Results • Business Wire • 04/23/2024 08:09:00 PM
- Futures Pointing To Extended Rebound On Wall Street • IH Market News • 04/23/2024 01:11:27 PM
- U.S. Index Futures Rise in Pre-Market, Oil Prices Dip Slightly • IH Market News • 04/23/2024 11:26:41 AM
- Apple Loses Market Share in China, GM Surges in Pre-Market Following Upward Revisions for 2024 Projections, and More News • IH Market News • 04/23/2024 11:25:34 AM
- U.S. Stocks Close On Bright Note Despite Coming Off Day’s Highs • IH Market News • 04/22/2024 08:38:04 PM
- Despite Record EV Production Numbers, Shortage of Battery Metals Looms • PR Newswire (US) • 04/22/2024 03:24:00 PM
- Despite Record EV Production Numbers, Shortage of Battery Metals Looms • PR Newswire (US) • 04/22/2024 03:23:00 PM
- Despite Record EV Production Numbers, Shortage of Battery Metals Looms • PR Newswire (Canada) • 04/22/2024 03:23:00 PM
- Li Auto Stock Drops 7.3% Amid Tesla Price Cuts, Salesforce Retreats from Informatica Deal, and Other Market Updates • IH Market News • 04/22/2024 12:09:21 PM
- Nasdaq, S&P 500 Extend Losing Streaks On Tech Weakness But Dow Advances • IH Market News • 04/19/2024 08:32:14 PM
- Paramount’s Shares Surge Following Sony and Apollo’s Joint Bid; ISS Backs Berkshire Hathaway Director Re-election, and More • IH Market News • 04/19/2024 11:31:22 AM
- Apple to Invest $250 Million in Singapore Expansion, Oracle Commits $8 Billion to Japan Infrastructure, and More News • IH Market News • 04/18/2024 11:11:52 AM
- United Shares Surge 5.3% in Q1 2024 Earnings Beat; Take-Two Cuts 5% of Workforce, and More News • IH Market News • 04/17/2024 10:57:39 AM
- Ericsson Soars with 66% Net Profit Growth; Live Nation Under Antitrust Scrutiny in US, and More News • IH Market News • 04/16/2024 11:18:19 AM
- Tesla Cuts 10% of Workforce, VP Resigns as Shares Fall 4% • IH Market News • 04/15/2024 06:42:49 PM
- Samsung Surpasses Apple in Q1 Smartphone Market; Salesforce in Talks to Acquire Informatica, and More News • IH Market News • 04/15/2024 11:06:48 AM
- Delta Generates US$37 Million Profit in Q1, Google and Intel Unveil Cutting-Edge AI Chips, and More News • IH Market News • 04/10/2024 11:13:48 AM
- Tesla Resolves Autopilot Lawsuit, JPMorgan Unveils Potential CEO Successors, and More • IH Market News • 04/09/2024 10:39:30 AM
Axis Technologies Group and Carbonis Forge Ahead with New Digital Carbon Credit Technology • AXTG • Apr 24, 2024 3:00 AM
North Bay Resources Announces Successful Equipment Test at Bishop Gold Mill, Inyo County, California • NBRI • Apr 23, 2024 9:41 AM
Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM
Avant Technologies Launches Advanced AI Supercomputing Network and Expansive Data Solutions • AVAI • Apr 23, 2024 8:00 AM
BestGrowthStocks.com Issues Comprehensive Analysis of Triller Merger with AGBA Group Holding Limited • AGBA • Apr 22, 2024 1:00 PM
Cannabix Technologies to Present Marijuana Breathalyzer Technology at International Association for Chemical Testing (IACT) Conference in California • BLO • Apr 22, 2024 8:49 AM