Immediately after Tesla (NASDAQ: TSLA) announced the delivery results for Q1 2021, which clearly surpassed even the wildest expectations, analysts rushed to analyze the company's work and make their forecasts for the whole year. Goldman Sachs expects Tesla deliveries in 2021 at 850,000, and Wall Street will also adjust its forecasts closer to that figure.
In a client note, Goldman Sachs analysts wrote that Tesla's deliveries were well above expectations. While there were supply chain issues that affected the global auto industry and even forced Tesla to temporarily suspend production in Fremont in Q1, as well as the headwind from moving to production of the new Model S and X, the company has achieved some truly impressive results.
Goldman expects Wall Street's 2021 supply estimates to be revised upward. At the moment, the firm's forecast for Tesla is at the level of 850,000 deliveries vs. FactSet consensus at 809,000 and Bloomberg consensus at 831,000, but still expecting a more 2H weighted year in part due to ongoing supply chain problems.
Among the recent issues that affected Tesla and will not have an impact in the second half of the year, Goldman listed a few: recent supply chain challenges included the Texas weather in February and temporary semi factory shutdowns located there, a small fire at Tesla's Fremont factory, and the Suez Canal blockage. Since these problems were temporary, the firm expects a stronger 2H. In addition to eliminating the listed difficulties, Tesla will also meet new dawn in the 2H of the year, since it is during this period that it is planned to launch and increase production at Tesla's new factories in Berlin and Austin.
At the moment, the current target price of TSLA has not changed and remains at $835, but is likely to be revised after financial results for Q1 Goldman Sachs wrote.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.