By
Svetlana Soroka
April 18th, 2024
With stellar results for the first quarter of this year, analysts have turned bullish and upgraded the Tesla stock price expecting returns of 40-60% by the end of this year.
Last Friday, April 2, automobile giant Tesla Inc (NASDAQ: TSLA) reported its Q1 2021 numbers with record-breaking deliveries and production. The company delivered 184,800 vehicles in the first quarter against the analysts’ expectations of 168,000 vehicles. Meaning the company managed 10% additional deliveries to market expectations.
On Monday, April 5, the Tesla stock price surged a massive 7% during the trading hours. However, it closed 4.4% higher at a price of $691 with a market cap of $663 billion. Over the last few quarters, Tesla has been consistently outperforming market expectations. A strong first quarter puts Tesla in a comfortable position of achieving its yearly target of 750,000 vehicle deliveries by year-end.
Tesla’s 2021 target is nearly 50% more than what it achieved last year in 2020. Tesla has rapidly continued to increase production of its affordable segment cars – Model 3 and Model Y. “We are encouraged by the strong reception of the Model Y in China and are quickly progressing to full production capacity,” Tesla said in a press release.
Speaking about its other two models, the company wrote:
“The new Model S and Model X have also been exceptionally well received, with the new equipment installed and tested in Q1 and we are in the early stages of ramping production”.
TSLA Stock Price Supported by Tesla Strong Deliveries
With its massive performance, market analysts have upgraded the TSLA stock price. In a note on Sunday, April 4, Wedbush analyst Daniel Ives upgraded the Tesla stock to outperform. Thus, Ives has raised the 12-month target price to $1000 from $950.
“In our opinion, the 1Q delivery numbers released on Friday was a paradigm changer and shows that the pent-up demand globally for Tesla’s Model 3/Y is hitting its next stage of growth as part of a global green tidal wave underway,” Ives wrote. “We now believe Tesla could exceed 850k deliveries for the year with 900k a stretch goal, despite the chip shortage and various supply chain issues lingering across the auto sector.”
On the other hand, Alex Potter of Piper Sandler has given a price target of $1200 per stock. This is 60% higher than TSLA’s current trading levels. Speaking about the results, Potter wrote:
“The result was especially impressive because the Model S/X production line was shut down for almost the entire quarter, due to a long-awaited ‘refresh’ for these flagship models. Without this impact, deliveries would have been higher still, likely by 15k+ vehicles”.
Read other stock market news on Coinspeaker.