Spellbind Delivery Number Has Shot Up Tesla Stocks

Tesla Share Price

Tesla Share Price Comparison

Tesla Inc.’s stellar first-quarter delivery numbers stood out amid a difficult backdrop of the auto industry battling a semiconductor shortage, and gave a fresh lease on life to stocks of electric-vehicle companies on Monday.

Shares of Elon Musk-led Tesla jumped as much as 7% in New York Stock Exchange, erasing its year-to-date loss. Nio Inc, XPeng Inc. and Li Auto Inc. were all higher also , alongside other EV-related companies like ChargePoint Holdings Inc. and Beam Global.

Stock Meme (Stonk)

The group has received some good news over the past week, including a big push into electric vehicles in the infrastructure spending bill unveiled by U.S. President Joe Biden, and therefore the estimate-crushing delivery figures from Tesla. Together, they helped boost investor enthusiasm for the space, which experienced weakness within the first three months of the year amid a wider selloff in technology stocks.

Tesla Logo
Tesla Logo

Tesla on Friday said it delivered 184,800 cars worldwide for the primary quarter of the year, outpacing the 169,850 average of analysts’ estimates during a Bloomberg survey.

Tesla Supercharger
Tesla Supercharger at Night

“These delivery numbers are a paradigm and sentiment shifter for the space going forward,” Wedbush analyst Daniel Ives wrote during a note, calling Tesla’s delivery numbers a “jaw dropper.” He also said the recent brutal selloff within the space may now be within the rear-view mirror.

Tesla Model 3
It is the Tesla Model 3

Several other Wall Street analysts raised their estimates and price target on Tesla after the sales results. JPMorgan Chase analyst Ryan Brinkman said its ability to supply roughly an equivalent amount of vehicles within the half-moon as within the last three months of 2020, stands out in the industry, given global light vehicle production is estimated to have declined about 16% sequentially in the same period because of the chip shortage.

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