Business

Tesla rises 3% after it delivers more than 200,000 vehicles during the quarter despite chip shortage

Elon Musk Shanghai
Tesla CEO Elon Musk attends the groundbreaking ceremony of Tesla Shanghai gigafactory in Shanghai, East China.

  • Tesla gained as much as 3% on Friday after it said it delivered 201,250 vehicles during the second quarter.
  • Results were driven by sales of the Model 3 and Y, and were about in-line with analyst estimates.
  • “Congrats Tesla Team on over 200,000 car built & delivered in Q2, despite many challenges!!” Elon Musk tweeted.
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Shares of Tesla gained as much as 3% on Friday after the company said it delivered 201,250 vehicles during the second quarter.

Those results were about in-line with analyst estimates of 201,820 vehicles delivered, according to a Friday note from Wedbush analyst Dan Ives. Tesla’s delivery figures were driven by the success of its Model 3 and Model Y, which represented 199,360 of the vehicles delivered. That beat analyst estimates of 194,770.

Meanwhile, Tesla’s delivery of 1,890 higher-margin Model S and Model X vehicles missed analyst estimates of 5,550.

In a tweet on Friday, Musk congratulated the Tesla team on its delivery figures: “Congrats Tesla Team on over 200,000 car built & delivered in Q2, despite many challenges!!”

Those challenges referenced by Musk include semiconductor shortages, which has hampered production for automakers across the globe.

Tesla “yet again defied the skeptics and bears calling for a sizable miss with the chip shortage and China PR issues lingering in the month of April,” Ives said.

Tesla saw a 27% decline in China vehicle sales for the month of April following multiple PR issues related to quality concerns and protests during the Shanghai auto show.

Despite the issues, Tesla is on track to hit around 900,000 vehicle deliveries for 2021, considered a major stretch goal at the beginning of the year, according to Ives.

And based on Tesla’s second quarter production of 206,421 vehicles, “some of the supply chain issues are starting to moderate for Tesla,” Ives said.

Ives reiterated his “Outperform” rating and $1,000 price target for Tesla, representing potential upside of 48% from Thursday’s close.

Tesla stock chart
Read the original article on Business Insider

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