Tesla Q2 deliveries top 90K vs. 83K estimate; shares up 10%


During early morning trading on Wednesday, the California-based electric vehicle company saw its shares gain a full 5 percent to reach a record of $1,133 per share. Tesla took the title of the world's most valuable automaker away from Toyota Motor Corp.

That is roughly $4bn more than Toyota's current stock market value. Traditional automakers sell more cars and earn much more profit than Tesla, which still has not reported a full year of profit since its founding in 2003.

The vast majority of deliveries - some 80,050 - were Model 3 and Model Y vehicles.

Other carmakers Nissan and Honda also saw record plunge in sales even as investor confidence in Musk's plan for Tesla's electic cars captured the imagination of Wall Street. Model S and Model X accounted for 10,600 deliveries.

Tesla stocks also climbed after the company announced a partnership with Swiss mining and commodities behemoth Glencore to boost production in China and a planned Gigafactory near Berlin, according to reports.

Instead of "killing" off Tesla, the tepid electric offerings of established carmakers such as Audi and Mercedes have only underscored the quality of their rival's battery and powertrain technology (the same can't be said of Tesla's build quality).

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Analysts said the solid delivery numbers heightened expectations for a profitable second quarter, which would mark the first time in Tesla's history that it would report four consecutive quarters of profit.

"A 90k delivery number in this COVID lockdown environment is a jaw dropper", Wedbush analyst Daniel Ives said in a note.

Tesla's new Model Y crossover is expected to become a big seller going forward. The Model Y is Tesla's first crossover vehicle, an auto industry segment that is widely popular with USA consumers.

Hours after a federal judge signed off on the amended deal in April 2019, then-SEC Commissioner Robert Jackson publicly criticized it, saying in a statement that Musk had not been sufficiently punished for failing to adhere to restrictions on his social media use. The newer Y small SUV and Model 3 smaller auto accounted for the bulk of the sales at 80,050.

From January to March, Tesla was still able to produce 102,672 vehicles, after which the Gigafactory 3 near Shanghai and the Fremont plant were closed from 23 March.

The automaker delivered just 88,496 cars during the first quarter, which means it managed more deliveries during a quarter when its factory was shut down much of the time. The automaker had to shutter its factory temporarily during the pandemic, although production is back up and running. The modest drop in deliveries is surprising because local officials forced Tesla to shut down its main vehicle factory, in Fremont, California, in March. These numbers were high considering the coronavirus pandemic was at its peak during the last few months and production facilities were witnessing disruptions. To put that number in context, Tesla was trading at about $223 in July 2019, meaning its stock price has increased more than fivefold since this time a year ago. Rumors indicate that Austin, Texas is a strong candidate for Tesla's new factory.