Tesla: shares jump as deliveries exceed consensus
(CercleFinance.com) - Tesla shares jumped 9% on Friday after the Californian electric car maker delivered more vehicles than expected in the first quarter.
The Palo-Alto company delivered 88,400 vehicles in the first three months of the year, its best ever first quarter performance, beating the consensus of about 79,000.
"Model 3 & Y accounted for 76,200, which handily beat the Street's
expectation of 68,674," Wedbush analysts wrote in a note today.
As a reminder, Model Y production started in January with deliveries beginning in March, significantly ahead of schedule.
In a bleak environment that is tainted by the Covid-19 outbreak, these delivery numbers come as a sigh of relief for the bulls, Wedbush added.
"While cash burn will be heightened in the near term due to this anomalous global situation, we believe the longer-term trends remain very healthy," the broker said.
Analysts at Canaccord Genuity seemed to agree.
"We view these results as a clear indication that EV demand had remained strong for Tesla well into the quarter, and that the company is well positioned to satisfy that renewed demand once the Covid-19 pandemic abates," the Canadian broker noted.
Copyright (c) 2020 CercleFinance.com. All rights reserved.