Tesla (NASDAQ:TSLA) stock is in focus today after the electric vehicle maker reported record quarterly deliveries. Importantly, Tesla set the record despite closing its plant in Shanghai for several days due to increases in Covid-19 cases in the city.
In the first quarter, Tesla delivered 310,048 EVs globally, setting an all-time quarterly record. The total, however, was slightly below analysts’ average estimate of 317,000. It also only represented a 0.5% increase from the previous quarter.
However, the automaker did point out that it had achieved the delivery record “despite ongoing supply chain challenges and factory shutdowns.”
Indeed, on March 28, Tesla suspended production at its Shanghai factory “to carry out mass testing for COVID 19,” Reuters reported. The plant is still closed today, as the city of Shanghai is in the midst of a lockdown. The facility was also shut down for two days earlier in March.
What Do Delivery Numbers Mean for TSLA Stock?
Piper Sandler analyst Alexander Potter noted that the automaker’s average daily production total had edged up last quarter to approximately 3,400 EVs, versus about 3,300 vehicles during the previous quarter. He believes that Tesla is effectively managing its supply chain issues and kept a $1,350 price target and a “buy” rating on TSLA stock.
Less upbeat is Cowen’s Jeffrey Osborne. The analyst warns that the shutdown of Tesla’s Shanghai facility could negatively impact its Q2 shipments. Osborne maintained a $790 price target and a “hold” rating on the name.
Heading into today, TSLA stock had soared 35% over the last month, though it had only gained 2.6% in 2022. As of this writing, shares are up 1%.
On the date of publication, Larry Ramer 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.
