Tesla stocks surge again on strong delivery numbers, increase lead over Toyota2 min read . Updated: 03 Jul 2020, 07:56 AM IST
Tesla became the most valuable carmaker in the world on Wednesday by beating Japanese carmaker Toyota.
Tesla Inc outpaced analyst estimates for second-quarter vehicle deliveries on Thursday, defying a trend of plummeting sales in the wider auto industry as coronavirus-linked lockdown orders kept shoppers at home, and sending its shares up 8%.
The unexpected delivery numbers come a day after Tesla became the highest-valued automaker, surpassing the market capitalisation of former front-runner Toyota Motors Corp.
The rally on Thursday further widens Tesla's lead over legacy automakers as investors grow confident in its ability to define the industry's electric and software-driven future.
Shares surged by about $85 in early trading to $1,204.
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 delivered 90,650 vehicles during the quarter, significantly above estimates for 74,130 vehicles, according to Refinitiv data. It delivered 80,050 units of its new Model Y sport utility vehicle and Model 3 for the quarter.
The company did not break out deliveries by model or country, but Chinese vehicle registrations showed accelerating consumer demand for the Model 3 sedan. Nearly 16,200 Teslas were registered in China in April and May combined, with June figures still outstanding.
The company is also ramping up output at its Shanghai vehicle factory, where it aims to produce 150,000 vehicles by the end of this year. The Shanghai plant was only briefly impacted by coronavirus shutdowns in late January and early February.
Tesla's only US vehicle factory in California, where the bulk of its vehicles is currently produced, was shut down for some six weeks during the quarter, heeding local orders to curb the spread of the novel coronavirus. While vehicle deliveries increased 2.5% on a quarterly basis, production dropped nearly 20%.
"While our main factory in Fremont was shut down for much of the quarter, we have successfully ramped production back to prior levels," the automaker said in a statement.
Tesla in January said 2020 vehicle deliveries should comfortably exceed 500,000 units, a forecast the company has left unchanged despite the pandemic.
Other major automakers posted lower US monthly or quarterly new vehicle sales on Wednesday due in large part to weak fleet orders, but said consumer demand remained robust despite the continuing coronavirus pandemic.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.