Tesla beat Wall Street estimates for Q1 2021. Analysts projected that Tesla would deliver between 160,000 to 170,000 vehicles because of the global automotive microchip shortage affecting the entire industry. According to Barron’s, Tesla even beat the Street’s expectations before analysts were warned about the chip shortage.
“The 1Q delivery number….was a paradigm changer and shows that the pent-up demand globally for Tesla’s Model 3/Y is hitting its next stage of growth. A global green tidal wave [is] underway,” Ives wrote in a note.
Well-known (TSLA) bull Pierre Ferragu from New Street Research gave Tesla shares a Buy rating and set its price target to $900 before the company’s delivery report was released. Ferragu’s price target accounted for the chip shortage as well.
“Initial review suggests we missed a monster March in China with Model Y ramping faster than we expected,” he said after Tesla released its delivery results. Ferragu believes Tesla’s earnings estimate will move higher because of Model Y growth, while Model S and Model X deliveries could boost second-quarter results.
Disclaimer: I own (TSLA) stock.
The Teslarati team would appreciate hearing from you. If you have any tips, email us at [email protected] or reach out to me at [email protected].