Tesla upgraded by analysts following record-breaking Q1 deliveries


One company that traders and analysts are watching closely right now is Tesla (NASDAQ: TSLA). Shares of the company have done extremely well in 2020, but have since seen a stark retraction over the past few months. While some have thought that the supposed electric vehicle (EV) market bubble has popped, the reality is that EV manufacturers are continuing to do very well. Tesla is one of those, with the company reporting another record-breaking quarter in terms of car deliveries.

Tesla reported that its Q1 delivery figures had climbed to over 184,800, substantially higher than the 168,000 most analysts were expecting. That’s even better than the previous quarter, which reported around 180,000 deliveries. Despite expectations that Tesla would see a decline, the EV manufacturer is staying strong. In response to the news, analysts on Wall Street were quick to either bump up their price targets or outright upgrade the stock to a buy.

In our opinion the 1Q delivery numbers released on Friday 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 as part of a global green tidal wave underway. We now believe Tesla could exceed 850k deliveries for the year with 900k a stretch goal, despite the chip shortage and various supply chain issues lingering across the auto sector,” wrote Wedbush analyst Dan Ives just prior to the weekend. “While the EV sector and Tesla shares have been under significant pressure so far this year, we believe the tide is turning…”

The Wedbush analyst also went on to say that he raised his target price from $950 to $1,000, substantially higher than the current stock price for TSLA. In the long-term, he expects shares to rise as much as $1,300, making him one of the most optimistic analysts on Wall Street when it comes to Tesla.

While many analysts are bullish on Tesla, there are just as many, if not more, that are neutral on the company. Right now, there are ten analysts that have a “buy” rating on Tesla. In comparison, there are 15 analysts that are neutral, while nine have some sort of “sell” rating.

Although shares are down from their earlier January highs, Tesla’s stock price is hovering around the $660 price mark. Most EV stocks ended up jumping last week after Biden announced his proposed $2.3 trillion infrastructure plan. In addition to rebuilding roads and bridges across the country, the new proposal would also a lot of funding for over 500,000 EV charging stations across the nation and a number of programs to buy EVs for state and federal usage.


Tesla Company Profile

Founded in 2003 and based in Palo Alto, California, Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles. It sells solar panels and solar roofs for energy generation plus batteries for stationary storage for residential and commercial properties including utilities. The Tesla Roadster debuted in 2008, Model S in 2012, Model X in 2015, Model 3 in 2017, and Model Y in 2020. Global deliveries in 2019 were 367,656 units. Tesla went public in 2010 and employs about 50,000 people. – Warrior Trading News