Tesla delivered over 25,000 vehicles in the first quarter, exceeding analysts’ estimates. Analysts had expected deliveries between 23,000 and 24,500. The number of deliveries marked a quarterly record, rising 70% from the year-ago quarter. It also keeps Tesla on pace to deliver on its projections to deliver 50,000 vehicles in the first half of 2017.
Tesla (TSLA: $301) is ramping up production as it prepares to launch its less expensive Model 3 sedan. Production of that car is expected to begin in July with the first deliveries made by the end of the year. Tesla’s goal is to produce 500,000 vehicles a year by the end of 2018.
BMR Take: The stock set a new all-time high yesterday as it was up $10, or 7%, as well as earlier today when it hit $300, despite the overall stock market being down today. It crossed our Target Price of $290 yesterday in that big move, so we hereby set a new Target of $325 on the stock. The Sell Price is raised from $240 to $280. We don’t want to lose the 50% gains on this stock – we added it to the Special Opportunities portfolio at $199 in January of last year.
The market cap is now $49 billion, surpassing Ford which is at $45 billion. GM is the next target, as it sits at $51 billion. What a story. And they haven’t even started production of the Model 3 yet, for which they are holding deposits for 400,000 cars!