Tesla: Shares up 7% on boom in deliveries
Tesla reported that the stock was up more than 7% in Monday morning trade. This significant increase was due to deliveries and production numbers in the second quarter, which beat analysts’ expectations.
Record deliveries in the second quarter
Tesla released its vehicle production and deliveries report for the second quarter of 2023 on Sunday. Key figures suggest that the total number of deliveries was 466,140while total production has reached its quota 479,700. These results beat analysts’ estimates and suggest so an 83% increase in deliveries for Tesla year-over-year. The company achieved these results by expanding manufacturing capabilities and increasing production at its Austin, Texas vehicle assembly plant.
The second quarter of 2023 marks the fifth consecutive period in which Tesla recorded more vehicles produced than vehicles delivered. In the same period last year, Tesla recorded 254,695 deliveries, in the first quarter of this year there were 422,875 deliveries. In terms of production, Tesla had produced 258,580 vehicles in the second quarter of 2022, compared to 440,808 vehicles last quarter.
Shipments are a very important number for Tesla shareholders and represent the closest approximation to the company’s reported sales. Wall Street awaited a report from Tesla 445,924 deliveries for the period ended June 30, 2023, but the company exceeded those estimates by delivering more 20,000 more cars. This result was achieved thanks to the incentives and rebates offered to buyers in the first half of the year, as well as the federal tax credit $7,500 in the United States provided byInflation Reduction Law.
The future worries about Tesla remain
Alexander E Potter, a senior research analyst at Piper Sandler, said Tesla car prices remained stable in the second quarter, despite the company’s sharp discounts in the first quarter, which raised concerns about margins. However, Potter warned that price cuts in the third quarter, if implemented, could reignite investor concerns about the company’s margins.
The company achieved these results by expanding manufacturing capacity and increasing production at its Austin, Texas vehicle assembly plant. Despite stock growth, expectation of new models and increasing competition could continue to put pressure on Tesla’s sales.
Tesla Stock Analysis
Tesla shares closed on Friday $261.77 ahead of the release of the second quarter delivery report. Despite the disappointing performance in 2022, shares have soared into almost 2022 this year 126%, even if they are still far from the highs reached during the pandemic. The stock has recovered significantly from its December 2022 low $101.81.
For today’s session, the company is making good progress and is currently bringing one home +5.63%. The start was exuberant for the stock and began with a strong price increase up to zone a 284.25.
The short-term technical framework is still showing upside pressure after breaking through the high levels $275. Possibility to backtest up to 248 This will not threaten the good state of the current trend but will be a temporary correction. Further bullish extension to the upside is expected 290 and later 310.
