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Tesla shares jump after first-quarter sales increase

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Tesla shares rose more than 7 percent in pre-market trading Monday after Issued Production and delivery numbers broadly exceeded expectations, and are on their way to reach their highest levels in more than a month.

Tesla reported Friday that it had delivered 184,800 cars and produced 180,338 cars in the first quarter of 2021, and analysts had expected the company to deliver about 168,000 cars during that period.

It was a record quarter for the company, surpassing the 180,570 deliveries that Tesla recorded in the fourth quarter of last year.

Analysts said the first-quarter delivery numbers were a paradigm shift and show that globally pent-up demand for Model 3 and Model Y is reaching its next stage of growth as part of the ongoing global green tide.

We now believe that Tesla could exceed 850,000 deliveries this year with an extended target of 900,000, despite the chip shortage and the many unresolved supply chain issues in the automotive sector, they added.

A filing issued in February showed that Tesla’s sales in China doubled last year amid the coronavirus pandemic.

The Chinese electric car maker had sales of $ 6.66 billion, about a fifth of the company’s revenue of $ 31.54 billion.

Tesla is set to add about $ 50 billion to its market value after recording record deliveries, beating the impact of the auto chip shortage that hit the entire sector.

The electric car maker said on Friday that it was encouraged by the strong reception of the Model Y in China and that it was rapidly advancing to full production capacity.

The personal wealth of CEO (Elon Musk), Elon Musk, was boosted by a more than eight-fold increase in the share value last year, despite the fact that Tesla’s production represents only a fraction of the competitors, such as: Toyota, Volkswagen and General Motors.

The electric car sector appears poised to resume its bullish run, given the growing demand for electric vehicles in China and Europe, the US company Tesla delivery numbers may be the spark needed to start the next rally.

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