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Tesla (TSLA) Stock Continues To Soar After A Phenomenal Quarter

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Following the surge in value after Jan 2020 and the sequential correction, many doubted the integrity of TSLA’s second steep climb around the end of March in 2020. Fast Forward to 25th January 2021 and TSLA stock was priced at USD 900.40 for its highest value to date. Currently valued at just under USD 700 (a meteoric 700% increase from the start of 2020), TSLA saw a 2.36% jump at the last check on Thursday, April 8th, 2021.

What happened?
This jump coincided with the first quarterly delivery report for the year of 2021. Despite the automotive industry suffering across the board on account of a shortage of semiconductors, Tesla managed to have a record-breaking Q1 that shattered the expectations of analysts. With deliveries expected to be around 170,000, Q1 saw a whopping 184,800 deliveries that sets Tesla on the track to hit 750,000 deliveries for the year. This would be a 50% increase from the 500,000 deliveries fulfilled in 2020.

How did it happen?
There was a drop in deliveries of Model S and Model X vehicles from 12,200 deliveries in Q1 of 2020 to 2,020 deliveries in Q1 of 2021. However, the cessation of production and reduced deliveries of their pricier models can largely be attributed to the rolling out of newer versions of these models. This is sharply contrasted with Model 3 and Model Y vehicles reporting 76,200 combined deliveries in Q1 of 2020, with cumulative deliveries seeing a 140% increase to 182,780 deliveries in Q1 of 2021. Production of their Model Y started in Q4 of 2020 in China and plays a significant part in Tesla’s performance in 2021 so far, having been generally very well received.[4]

What happens next?
With such strong numbers and promising growth, investors have had their confidence in the company assured. This news in tandem with President Biden’s focus on the EV sector in the recently unveiled infrastructure budget plan has consolidated investor presence in the EV sector. Not just for Tesla, shares across the EV sector have seen a positive shift, now poised on the verge of further growth.

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