Some of the world’s biggest automakers are still struggling with parts shortages but that hasn’t stopped Tesla (TSLA) from delivering a record number of vehicles in Q1.
The EV leader delivered 310,000 units in the quarter, amounting to a 68% year-over-year increase, and coming in roughly in line with consensus expectations. Broken down, Model 3+Y deliveries hit 295,324, with Model S+X units accounting for 14,724 deliveries. Total production for Q1 came in at 305,407, slightly below 4Q21’s 305,800 units.
With fears the recent Covid lockdowns in China and the ongoing disruptions to the supply chain would take a bigger toll, Deutsche Bank analyst Emmanuel Rosner is “impressed with Tesla’s operational execution in the face of large industry supply-chain challenges, and with its pricing power which could enable it to more than offset steep raw materials pressure.”
The performance also sets Tesla apart from other leading automakers such as General Motors and Toyota, where the lack of key components were behind recent sales drops.
By taking advantage of its long-term contracts, robust purchasing power, and being able to “diversify” its battery chemistry to keep the use of expensive inputs to a minimum, Rosner thinks the company is “well positioned to deal with current macro challenges.”
What’s more, with the Berlin and Texas factories up and running and further adding to Tesla’s production abilities, Rosner continues to expect “strong” Tesla volumes this year.
“The 1.24m+ unit annualized production achieved in 1Q22 represents a solid start to 2022,” Rosner summed up, while also noting that this should keep the company “on track” to deliver ~1.5 million units in 2022.
To this end, Rosner maintains a Buy rating on Tesla shares, backed by a $1,200 price target. Should the figure be met, investors are looking at upside of ~15% from current levels. (To watch Rosner’s track record, click here)
According to the rest of the Street, however, the shares are currently trading above their fair value; going by the average price target of $1,015 and change, the stock will stay rang-bound in the coming months. (See Tesla stock forecast on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
