Tesla’s prospects are generally optimistic by Wall Street investment banks after announcing the delivery in the first quarter of this year on Friday. On April 5, JPMorgan Chase released a report that Tesla’s delivery in the first quarter was better than expected, and expected that the annual delivery was favorable, and the annual delivery was raised from 765,000 to 800,000.
On the evening of April 2, Tesla released the first quarter delivery data, showing that the company produced about 180,000 cars and delivered nearly 185,000 cars in the first three months of this year, which was higher than the market expectation of 168,000 vehicles and set a new Tesla’s quarterly delivery record. Among them, the total delivery of Model3 and ModelY reached 182,780, and the production reached 180,338, accounting for 99% of the delivery in the first quarter.
Tesla’s first-quarter delivery data proves that potential demand for Model3 and ModelY worldwide is moving into the next stage of growth,” Wadebush analyst Danlves said. We believe that despite chip shortages and various supply chain problems throughout the automotive industry, Tesla’s delivery this year is likely to exceed 850,000 vehicles, 900,000 is an extension target.”
However, there are also short-selling shorts who are short on Tesla’s prospects this year. Gordon Johnson, an analyst at GLJ Research, who shorts Tesla, believes that although Tesla’s factories in China have fully started and have made many price reductions, Tesla’s delivery has “basically” no longer increased. He believes that comparing the first quarter of 2021 with the first quarter of 2020 is “insignificant” and the appropriate comparison should be the fourth quarter of 2020.
In fact, although Tesla’s sales increased by 109% year-on-year in the first quarter of this year compared with last year, compared with the previous quarter, Tesla’s growth rate in the past quarter has slowed significantly, with a month-on-month growth rate of only 2.2%.
For Tesla’s target price, JPMorgan Chase raised it from $135 to $155 to maintain the losing market rating; Wadebush raised Tesla’s target price to $1,000 and set the long-term bullish target price at $1,300. Danlves believes that although the electric vehicle industry and Tesla’s share price have been under great pressure so far this year, the huge demand in the Chinese market cannot be ignored. By 2022, Tesla will account for 40% of China’s total electric vehicle delivery. lves believes that Tesla’s profitability and free cash flow situation will improve significantly in the next three to four years, and it is expected that the profit per share will have the potential to reach $20 per share by 2026.
As of press time, Tesla rose nearly 8% before trading on April 5, and its share price is expected to return to the $700 mark.