Tesla Investors Cheer as Tesla Q1 Deliveries Set a Record

TSLA stock: Tesla Super Charging station on Stockdale Hwy and the 5 fwy. Tesla Supercharger stations allow Tesla cars to be fast-charged at the network within an hour.

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Tesla’s (NASDAQ:TSLA) winning streak continues. TSLA stock has rallied from $800 to $1,100 in recent weeks and appears set to extend its gains. That is in large part due to recent news on its production figures. In the first quarter (Q1) of this year, Tesla produced 305,000 vehicles and delivered 310,000 vehicles. The 310,000 figure was a hair below analyst consensus of 312,000. However, Wall Street is still viewing it as a strong number given the massive supply chain shortages and logistical problems that other automakers are having.

Firms like General Motors (NYSE:GM) have reported sizable misses on their vehicle deliveries. This naturally led to concern that Tesla would follow suit. Instead, its numbers were largely in-line. Further to that, Tesla’s 310,000 number represents an almost 70% increase from the same quarter of last year.

This is tremendous performance from Tesla given the semiconductor shortage that has battered the automotive industry. Some analysts suggest that Tesla has been able to sidestep the shortage. Due to its ability to customize its software, Tesla can substitute available chips for ones that are out of stock. Furthermore, since Tesla sells higher-end vehicles, it needs fewer chips overall to generate its revenue, as opposed to automakers that rely more on lower-priced mass market vehicles.

Tesla’s 310,000 vehicle figure puts it well above a one million vehicle per year run-rate. And things could trend upward toward two million vehicles per year over the next year. The new Tesla factory in Berlin should allow Tesla to establish far more market share within Europe. On the other end of the spectrum, however, Tesla may see a slowdown in Asian sales. Its Shanghai factory has suspended operations due to a new round of Covid-19 restrictions in that area.

Now, Tesla’s production numbers may get overshadowed by other Elon Musk news. Namely, that he’s acquired 9.2% of Twitter (NYSE:TWTR). It remains to be seen how Musk will integrate his Twitter holding into his broader business empire and the potential second-order effects on Tesla. For now, regardless, TSLA stock is looking good thanks to its record deliveries number. Given all the headwinds that the automotive industry is facing, it would have been easy for Tesla to post a downbeat Q1 production figure. Instead, this one was close to expectations. That could set the stage for a strong 2022, especially as the Berlin factory gets fully up to speed.

On the date of publication, Ian Bezek did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek.


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