Size of the text
On April 26, 2021 in Corte Madera, California, brand new Tesla automobiles sit on a truck outside of a Tesla showroom.
Getty Images/Justin Sullivan
Tesla delivered a record number of vehicles in the second quarter.
Investors, on the other hand, shrugged. The new figures were in line with Wall Street expectations, marking the fourth consecutive quarter of record deliveries for the fast-growing electric vehicle pioneer. Tesla bulls on Wall Street, on the other hand, remained ecstatic.
Tesla delivered 201,250 vehicles in the second quarter, although its stock was down 0.3 percent in current trading after fluctuating on Friday. The
S&P 500 Index
and
The Dow Jones Industrial Average is a stock market index that measures how well
were up approximately 0.6% and 0.4%, respectively. Deliveries were a touch better than the Wall Street consensus, according to RBC analyst Joseph Spak, who added, “encouragingly, output outperformed deliveries.” This demonstrates to Spak that Tesla (TSLA) is effectively managing the via semiconductor supply issues.
The auto sector has been impacted by a global semiconductor shortage. For example, according to benchmark analyst Mike Ward, it cut North American car output by nearly 1 million light vehicles in the first half of 2021. Tesla shares are rated Hold by Spak, with a $725 price target. Ward covers the car industry, but not Tesla. Tesla’s results showed “operational competence,” according to Baird analyst Ben Kallo, as the company navigated the chip shortage and set another quarterly delivery record. He comments, “We are becoming increasingly confident in our [second half] delivery expectations.” “We estimate that underlying demand for Tesla goods is still high, with S/X, Cybertruck, and semi deliveries maintaining tailwinds,” says the company.
Subscribe to our newsletter Review & Sneak Peek Every weekday evening, we summarize the day’s most important market news and explain what’s likely to matter the next day.
He expects Tesla will deliver roughly 868,000 vehicles in 2021, which is higher than the Wall Street average of 855,000 to 865,000. Even more enthusiastic is Wedbush analyst Dan Ives, who expects Tesla will produce closer to 900,000 vehicles in 2021. The quarterly amount, he said, was “amazing.” According to Pierre Ferragu of New Street Research, Tesla deliveries will pick up in the second half of 2021. He points out that in the second quarter, Tesla manufactured around 204,000 Model 3 and Y automobiles, indicating that production in Shanghai is ramping up. Ferragu, Ives, and Kallo are all Tesla bulls, recommending that investors buy the stock. Ferragu has a target price of $900 on the company, while Ives has a target price of $1,000. At $736, Kallo’s is the cheapest of the three. Gordon Johnson, a GLJ analyst, is a Tesla bear. He assesses the stock as a Sell with a $67 Street low price target, and he was underwhelmed with the deliveries. Tesla detractors, he said, would focus on the fact that, unlike the first quarter of 2021 and the fourth quarter of 2020, Tesla produced more cars than it delivered in the period. Of course, deliveries and production should be closely synchronized over time. After digesting deliveries, analysts will turn their attention to results, which will be released in late July. Earnings per share are expected to be around 95 cents on Wall Street. For the first quarter of 2021, Tesla earned a profit of 93 cents per share. The last time Tesla posted a record quarterly operating profit was in the third quarter of 2020, when it earned $809 million. Analysts expect $961 million in the second quarter of 2021, which would be a new high./n
Read More
