Photo: Tesla China
Wedbush reaffirmed its Outperform Rating and $1,000 price target on Tesla (NASDAQ: TSLA) after the manufacturer reported strong production and delivery numbers for Q3 2021. Tesla's figures have surpassed analyst consensus, despite chip shortages hitting the auto industry and global logistics issues that have been negatively affecting business around the world for months.
Tesla announced the delivery of 241,300 vehicles in Q3 2021, well above the Wall Street estimate of 221,000. Wedbush emphasizes that the superior execution was driven by Model 3/Y sales at 232,000 (versus Wall Street estimates of 211,000) and Model S/X at 9,000 (compared to 10,000 Wall Street estimates). According to the firm, these figures show a strong trajectory for electric vehicle demand in Q4 and 2022, with the company continuing to dominate market share as evidenced again this quarter.
In the note to clients on Monday, Wedbush analyst Dan Ives wrote:
"Taking a step back, with the chip shortage a major overhang on the auto space and logistical issues globally these delivery numbers were eye popping and speaks to an EV demand trajectory that looks quite robust for Tesla heading into 4Q and 2022."
In addition to impressive delivery figures, the company produced almost 238,000 vehicles during the quarter, also better than the 228,000 that Wall Street had estimated. According to the analyst, this stimulates the growth of interest in Tesla shares.
"In a nutshell, these numbers are hard to poke holes in and will be a major feather in the cap for the bulls on Monday morning."
© 2021, Eva Fox | Tesmanian. All rights reserved.
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About the Author
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.