Tesla shares rose sharply on reliable supply data
As a result, shares of electric vehicle maker Tesla (TSLA) surged 2.8% during pre-market on Monday, October 4, reaching $ 797.18 per share.
On Saturday, the company announced that in the third quarter, it delivered a record number of electric vehicles – 241,300. The result surpassed the consensus forecast for deliveries (more than 223 thousand vehicles) and the estimated 221,952 given Tesla itself. The manufacturer reached the previous record of 201,250 electric cars in the second quarter of this year. However, buyers faced delivery delays. Tesla wrote about this in a report, explaining the delays by “problems of the global supply chain and logistics.” Over the past three months, Tesla produced 237,823 vehicles, up 13% from the previous quarter.
Quarterly shipments are one metric closely watched by Tesla investors. In addition, they as a barometer of consumer demand for electric vehicles writes Bloomberg. “Despite the shortage of chips and logistical problems around the world, the supply data was overwhelming. They suggest that the outlook for electric vehicle demand looks fairly robust for Tesla in Q4 and 2022,” ” said Wedbush analyst Dan Ives. Tesla now manufactures electric vehicles in two factories – in Shanghai and California, and assembles batteries in partnership with Panasonic in Nevada.
In addition, in the third quarter, the company began shipping lithium iron phosphate batteries from China. These batteries are for Model 3 electric vehicles that are for American customers. At the same time, due to a shortage of semiconductors, the company had to suspend some operations at an assembly plant in Shanghai, where it manufactures cars for customers in China and Europe.
Goldman Sachs expects supply chain problems and chip shortages to impact the auto industry’s performance negatively. Bank analyst Mark Delaney lowered his forecast for global car production in 2021 from 83 million to 75 million, and in 2022 – from 90 million to 85 million. Nevertheless, the expert still recommends buying Tesla shares, as he believes that the company is an “industry leader with good growth opportunities.” Mark Delaney expects Tesla shares to rise to $ 875 per share over the next year.
According to the analyst of investment bank Piper Sandler Alexander Potter, the third quarter will be “the strongest quarter in the history of Tesla.” In addition, the expert revised his forecasts for the company company’s sales based on the fact that Tesla’sTesla’s market share will continue to grow despite competition.
Now he predicts that in 2021 the total supply will be 894 thousand. The previous estimate was 846 thousand electric vehicles. Potter’sPotter’s forecast for Tesla shares is $ 1,200, 55% above current levels.
