- Despite missing its delivery goal, Tesla stock jumped.
- Even though it fell short of its goal, the EV firm still delivered a ton of vehicles.
What’s going on with Tesla stock
The fast-growing electric vehicle firm, Tesla (NASDAQ:TSLA) stock jumped in Monday afternoon trading. They closed up 5.6%, despite missing earnings over the weekend.
Why we care
That appears to be a decent start. After all, 310,000 deliveries are 68% more electric cars than Tesla delivered in Q1 2021. That’s an excellent total to achieve. Especially given that Tesla intends to increase sales by 50% on average throughout the year versus 2021. The firm will have easier time meeting targets later in the year due to the quick start.
Another positive development is that Tesla increased deliveries of its more profitable Model X SUVs and Model S luxury sedans by 25% year over year, which should aid in the achievement of earnings targets.
However, the figure was essentially flat in comparison to deliveries of 309,000 in the fourth quarter of 2021 – less than 1% sequential growth. It also fell short of Wall Street expectations. Analysts had predicted Tesla would be able to deliver 317,000 vehicles this Q1.
Investors applauding Tesla’s performance should be aware that the company last week extended the coronavirus-related shutdown of its Shanghai Gigafactory operations. Previous reports stated that production would resume yesterday, but there has been no indication that it has done so yet.
Even though Tesla has established another Gigafactory (in Germany) to assist in accelerating the global production of its electric vehicles, it will take some time for output there to reach total capacity. To compensate for each day lost in Shanghai, it will take many days of new production at the Berlin Gigafactory.
Tesla may need to catch a lucky break with COVID-19 in Q1. Or else, it may miss again in the second quarter if it hasn’t already.