Tesla (TSLA) Q1 Deliveries Impress Despite Coronavirus Crisis
Tesla, Inc. TSLA registered production and deliveries of 102,672 and 88,400 vehicles, respectively, in the first quarter of 2020, marking a year-over-year jump of 56.5% and 40.3%. Notably, this is the company’s best ever first-quarter performance.
The company’s Model S/X division recorded production and delivery volume of 15,390 and 12,200 vehicles, respectively in the quarter. The Model 3/Y division registered production of 87,282 vehicles, while 76,200 vehicles were delivered.
The production of the latest Model Y began in January 2020 and deliveries began in March, significantly ahead of schedule. Furthermore, despite the coronavirus outbreak, Tesla's Shanghai factory managed to hit record production levels.
In 2019, Tesla delivered 367,500 vehicles, reflecting an increase of 50%, year over year, and nearly in line with the company’s full-year guidance of 360,000 vehicles.
With China being the biggest electric vehicle (EV) market, Tesla’s plans to expand production in the country bode well. Per management, the company has already managed to manufacture 1,000 saleable cars at its Shanghai factory, despite breaking ground less than 12 months ago. With more battery production, it will be capable of producing more than 3,000 units a week in the upcoming period.
Moreover, it is aimed at opening Gigafactories in Europe and a few other regions in order to boost output. It also plans to announce the location of its European Gigafactory soon, wherein the company intends to start manufacturing electric vehicles in 2021.
Zacks Rank & Stocks to Consider
Tesla currently sports a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same sector are Fox Factory Holding Corp. FOXF, Blue Bird Corporation BLBD and Adient plc ADNT. While Fox Factory and Blue Bird sport a Zacks Rank #1 (Strong Buy), Adient carries a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
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