Tesla’s strong sales are a ‘mic drop’ moment, says analyst

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Tesla Inc.’s quarterly sales beat expectations, prompting one analyst to call them a “drop the mic” number despite previous Wall Street concerns about chip and parts shortages that have plagued the auto industry. . Tesla TSLA, -0.93% “once again challenged the skeptics and bears,” Wedbush’s Dan Ives said in a note on Friday.

The strength in the quarter was driven by Model 3 and Model Y sales, it said. Wall Street had braced for the impact of the shortage on Tesla sales, which made the above-expected selling “a massive home run in the eyes of the bulls,” Ives said. Tesla reported early Friday that first-quarter deliveries, its sales proxy, totaled 184,800 vehicles, beating the FactSet consensus of 168,000. The Silicon Valley electric car maker said it produced just over 180,000 vehicles in the period. Tesla sold 182,780 of its Model 3 sedan and Model Y compact SUV. The FactSet consensus was 122,600 Model 3s and about 10,000 Model Ys. The company said in a statement that it was “encouraged by the strong reception of the Model Y in China and that it is rapidly progressing to full production capacity.” Tesla sold 88,000 vehicles in the first quarter of 2020, a period marked by pandemic-related factory closures. General Motors Co. GM, + 0.59% earlier this week reported that its total US sales rose 4% amid a sharp increase in demand. The stock market is closed on Friday, but Tesla shares are down 6.2% year-to-date, while the S&P 500 SPX + 1.18% is up 7%. The stock is up 628% in the last 12 months.