Tesla Inc (ticker: TSLA) stock opened the week higher 5 percent after the company reported more than 25,000 vehicle deliveries in its first quarter.
Analysts were anticipating Tesla would deliver between 23,000 and 24,500 vehicles on the quarter.
For Tesla, quarterly delivery numbers are a critical check on the company’s aggressive intended ramp in production over the next several years. Tesla delivered just over 76,000 vehicles in 2018. CEO Elon Musk has pledged to increase production to 500,000 by 2018 following the highly-anticipated roll-out of the Model 3.
Tesla plans to begin producing the Model 3 in July and shipping the vehicle by the end of this year.
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Tesla has been inconsistent about hitting shipping targets in the past. In 2016, Tesla shipped 76,230 vehicles, short of its target of 80,000. Even though the company didn’t hit its target last year, its vehicle production was still up an impressive 64 percent on the year.
The strong first-quarter numbers had Tesla stock trading at new all-time highs on Monday morning, eclipsing the previous high of $291.42 set back in 2014. Baird analyst Ben Kallo says it’s only a matter of time before Tesla is trading meaningfully higher.
“The release of Q1 deliveries was another de-risking event for the stock, and we expect shares to trade higher as investors are increasingly able to focus on the Model 3,” Kallo says. “We continue to believe TSLA can make new highs in 2017 with continued execution toward Model 3 production ramp.”
Tesla has not provided full-year vehicle delivery guidance. However, the first-quarter number suggests the company is on track to meet or exceed its guidance for 47,000 to 50,000 deliveries in the first half of the year.
Tesla reported 13,450 Model S sedan deliveries and 11,500 Model X SUV deliveries in the quarter. In addition, the company said it had about 4,650 vehicles in transit at the end of the quarter that will count toward second-quarter delivery totals.
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Baird maintains an “outperform” rating and $368 price target for Tesla stock.
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Tesla Inc (TSLA) Stock Soars on Deliveries originally appeared on usnews.com
