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What to expect when Tesla reports Q1 deliveries

Tesla, Inc. (NASDAQ: TSLA) is expected to release its first quarter delivery numbers next week. The latest figures will come as the company̵

7;s shares have sold since February, and a shortage of chips has forced many car manufacturers to trim production.

Upbeat Expectations For Tesla: Even if Tesla did not provide a ballpark figure for 2021 deliveries, the ongoing sales momentum will probably continue. The company comes out a year where it delivered a record high 499 550 cars.

Deliveries in the first quarter are expected to be 170,000 units, indicating a 92% increase over the year, said RBC Capital Markets analyst Joseph Spak, referring to checks and regionally reported data.

This represents a decrease of 6% from quarter to quarter and a scale back from Spak’s previous estimate of 182,000.

Distribution of deliveries by model, the RBC analyst estimates 164800 deliveries of Model 3 / Y and 5300 Model S / X deliveries.

Tesla may have produced 170,000 cars in the quarter, with 96,000 expected to be rolled out of the Fremont plant and 74,000 from the Shanghai Giga, Spak said.

The market sets a bullish figure for the quarter, judged by trading in the options market.

Related link: Why Tesla accepts Bitcoin is ‘Seminal Moment’ for EV stock, Crypto World

Tesla’s China Momentum Intact: Tesla began selling Model Y vehicles at the beginning of the year. The car is seen as a distraction in the company’s most important Chinese market, given that it is priced competitively to similarly positioned SUVs from traditional car manufacturers.
The decline in sales of domestic Chinese EV manufacturers such as NIO Limited (NYSE: NIO), XPeng Inc. (NYSE: XPEV) and Li Auto Inc. (NASDAQ: LI) has been partly blamed for the Tesla competition. Even when these home-made companies reported a month-on-month decline in February, Tesla increased by 18%.

Wedbush analyst Daniel Ives said he believes Tesla is on track to be on a 200,000 plus unit trajectory in China for the year, which remains a key ring for the company to reach the figure of 750,000 to 800,000 for the year.

Following a series of price cuts last year, the company has recently begun to increase vehicle prices, underlining the strength of demand.

What to see in Tesla’s Q1 report: When Tesla reports the results for the first quarter, the focus will probably be on economic calculations such as gross margins and cash flow, as well as technology and future development, said RBC’s Spak.

The analyst expects the company to shed light on how the chip shortage affects Tesla.

Reduction risk may exist for the forecast for consensus deliveries of 831,000 for 2021, especially the number for the second quarter due to a lack of pieces, he said.

On Friday, Nio said it would stop production at the factory for five days due to a lack of chip supply, and the carmaker also trimmed the delivery forecast for the first quarter.

RBC has a Sector Perform rating on Tesla shares.

TSLA Price Action: At the last check, Tesla shares were down 4.28% on Friday to $ 613.

Related link: Tesla raises model 3 prices for the second time in a month

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