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Sunday, November 28, 2021

Tesla’s (NASDAQ:TSLA) Set New Production and Delivery Records, Stock Up After Hours


Tesla (NASDAQ:TSLA) shares rose Tuesday after the EV maker said it broke its prior production and delivery records during Q-2, beating analysts’ estimates.

The Big Q: Is it sustainable?

The company’s stock jumped by about 7% in after-market trading. Tesla also hinted at a strong Q-3, saying it’s entering the period with a backlog of orders.

Tesla is currently trading at: 240.50 +15.95 (7.10%), after hours: 5:47p EDT

CEO Elon Musk set investors’ expectations high in a company-wide email on 25 June, saying the electric car maker was on course to deliver a record number of vehicles throughout the Quarter.

The company delivered 95,200 cars during the the 3 month frame ending 30 June 30, a 51.1% increase over a weak Q-1 and besting its prior record of 90,700 deliveries set in Q-4 of Y 2018.

Tesla’s deliveries are a closely watched industry number and the nearest reflection of sales, showing how many cars were actually delivered to customers.

“Challenges remain, but this is a step in the right direction,” said a Wedbush sector analyst. “The numbers were above even the bull estimates and shows a clear rebound for the company. This is a feather in the cap for Tesla.”

“Delivery numbers are important, but we need to see the tea leaves look good for the 2nd half,” he said in an interview. Tesla’s production target for the year is “still an Everest task, especially with competition coming at them from all angles. The real question is going to be, is this sustainable?”

Tesla told investors in April it expected to “deliver between 90,000 and 100,000 vehicles in Q-2. Although it is possible to deliver a higher number of vehicles.”

The company also recently lost 1 of its Top manufacturing executives at its Fremont plant, Peter Hochholdinger, who was VP of Production.

Also, Steve MacManus, VP of Interior and Exterior Engineering at Tesla, has departed the company.

A Tesla spokesperson did not respond to a request for comment, nor did Mr. MacManus.

Tesla’s stock has lost almost 33% of its value over the last year and the company’s market cap is at about $40-B.

Have a terrific Holiday week.

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