Tesla Inc.’s massive stock rally appears set to continue on Thursday after the company easily exceeded delivery expectations for the second quarter.
The automaker said Thursday morning that it delivered approximately 90,650 vehicles in the second quarter, before the 72,000 deliveries analysts polled by FactSet had predicted. Tesla TSLA,
The actual delivery count was also comfortably above the highest estimate recorded by FactSet, which was 86,000.
Shares were up 9% in premarket trading.
Tesla delivered 80,050 Model 3 and Model Y vehicles combined in the period, as well as 10,600 Model S and Model X vehicles combined.
The company announced that it produced 82,000 vehicles in the June quarter, although production at its main Fremont, California factory “closed for much of the quarter.” The Tesla factory there is now producing cars at pre-pandemic levels, the company revealed.
Read: Some workers complain that Tesla has threatened layoffs if they don’t return to work
“In our opinion, a delivery number of 90,000 in this COVID blocking environment is an eyedropper and the bulls will run with this as a possible paradigm shift going forward,” Wedbush analyst Daniel Ives wrote after the delivery numbers, calling the numbers a “big home run”. His research indicates that China “appeared to be the star of the show” in the second quarter, though Tesla did not provide any regional breakdown at launch.
Ahead of Tesla’s delivery report, Ives raised its price target on the stock to $ 1,250 from $ 1,000, even maintaining a neutral rating. He also said that his bull case target is now $ 2,000.
Ives wrote: “We believe that China’s growth story is worth at least $ 300 a share and $ 400 in a bullish case for Tesla since this [electric vehicle] Penetration will increase significantly in the next 12 to 18 months, along with the main battery innovations coming out of Giga 3 ”, the company’s factory in Shanghai.
Don’t Miss: These Stocks, Including Tesla and Apple, Are the Real Winners of the Second Quarter of 2020
Tesla shares have recovered nearly 150% in the past three months and have gained 400% in the past 12 months. The S&P 500 SPX,
It increased 23% in a three month period and 4.8% in the last year.
.
