Shares of Tesla accelerated eight per cent in pre-market trading today, after the world’s most valuable carmaker posted record deliveries as a solid demand for its electric cars offset the impact of a global shortage of chips.
The electric-car maker said on Friday it was encouraged by the strong reception of its Model Y crossover in China and it was quickly progressing to full production capacity.
Tesla’s ability to produce roughly the same amount of vehicles in the first quarter as in the fourth quarter “stands out relative to the trend in global light vehicle production,” J.P.Morgan analysts wrote in a note.
Tesla delivered 184,800 vehicles globally during the first quarter of 2021, above estimates of 177,822 vehicles, according to Refinitiv data.
Shares of Tesla were up nearly eight per cent at $714 in trading before the bell.
CEO Elon Musk’s personal wealth has been boosted by a more than eight-fold surge in the stock’s value last year, even though its production is just a fraction of rivals such as Toyota, Volkswagen and General Motors.
At least three brokerages ratcheted up their price targets on Tesla’s stock. Brokerage Wedbush made the most aggressive move by hiking its target by $50 to $1,000, much higher than the median price target of $712.50, as per Refinitiv data.