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Tesla has enjoyed a good reign as the top EV manufacturer in the world but that position might be flipped in no time as many competitors are entering the evergreen electric vehicle industry space.
The shares of the world’s largest electric vehicle manufacturer, Tesla Inc (NASDAQ: TSLA) have not had the space to react to the news about the company’s record vehicle delivery for the first quarter of 2021. According to the filing with the United States Securities and Exchange Commission (SEC), the company produced a total of 180,338 of its Model 3 and Model Y brands for the quarter.
The firm did not produce any Model S or Model X during the past quarter but Tesla delivered some of the car models in stock during the period. Of the total 184,800 deliveries made, 2,020 were from the Model S and Model X produced in 2020, as well as 2442 Model 3 and Model Ys produced in the last fiscal year.
Tesla Vehicle Delivery
According to a report from CNBC, the total deliveries for the quarter were better than the 168,000 vehicles analysts projected, and the company outperformed its Q1 2020 180,570 vehicle deliveries by 2%. The halted production of the Model S and X in the past quarter may be attributed to ongoing plans to overhaul the two vehicle’s design as revealed back in January. Per the report, Tesla wrote that with “new equipment installed and tested in Q1” the company is now “in the early stages of ramping production” for the rebranded versions of the Model S and X respectively.
When they finally hit the market, the Model S and X and their variants will rank as Tesla’s most luxurious EVs with features ranging from retouched air diffuser at the car’s rear plus a 19-inch and 21-inch wheel designs, to the ability of the Model S Plaid to accelerate from 0 to 60 miles per hour in 2 secs. According to prices listed on Tesla’s website, the Model S plaid will cost about $79,990 to $149,990.
Tesla shares closed Thursday’s session down 0.93% to $661.75. The market which closed for the Easter holidays is expected to resume today, giving Tesla investors the chance to upturn the negative price trend. In the pre-market, TSLA stock is 5.86% up, hitting the level of $700.
Competition Is Mounting against Tesla
Tesla has enjoyed a good reign as the top EV manufacturer in the world and that position might be flipped in no time as many competitors are entering the evergreen electric vehicle industry space. Several competing car companies are speeding up the design and production of their electric car products, while new players, such as Apple Inc (NASDAQ: AAPL) are also planning a move into the space.
“Legacy-free 30-50% net growth and 2-digit margin potential still support high multiples but Tesla is no longer unique as an EV play with preferred access to capital. Some of the edge started to erode, but only slowly and Tesla still leads on multiple fronts, from software to design-to-manufacture, speed of execution, and direct selling,” said Jefferies analyst Philippe Houchois.
Jefferies revised its target for Tesla stock from $775 to $700 in late March 2021.