Tesla Shares Rise 3.5% During Pre-Market Hours As Carmaker Firm Delivered 241,300 Vehicles In Q3

Tesla Shares Rise 3.5% During Pre-Market Hours As Carmaker Firm Delivered  241,300 Vehicles In Q3

Tesla  shares jumped as much as 3.5% on Monday during pre-market hours after the electric vehicle and clean energy company posted third-quarter vehicle production and deliveries that exceeded Wall Street expectations. Also, it is a testimony that the company held out against the factory shutdowns in China and the global semiconductor shortage.

In the third quarter ending September 30, the company delivered 241,300 vehicles, climbing 73.2% from last year deliveries and almost 20% higher than the second-quarter deliveries of 201,250. According to estimates compiled by StreetAccount as of September 30, the analysts estimated Tesla to deliver around 220,900 electric cars during this period.

Out of the total deliveries- higher-priced Model S and Model X comprised 9275 and Model 3 and Model Y totalled 232,025 deliveries. 

Last quarter, Tesla delivered 201,250 vehicles, out of which Model S and Model X summed to 1890 and Model 3 and Model Y concluded at 199360.

“Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct. Final numbers could vary by up to 0.5% or more,” the company said in a statement.

The carmaker produced 237,823 cars in the quarter ending September 30, 202. Of that, 228,882 comprised Model 3 and Y vehicles, and the rest consisted of Model S and Model X.

The third quarter total production stood at 237823, from which 228,882 were Model 3 and Model Y sedans, 8,941 were of its higher-price range Models S and X. 

In a statement on Saturday, Tesla acknowledged delays and thanked their customers for their patience as the company “worked through the global supply chain and logistics challenges.”

Tesla Shares Rise 3.5% During Pre-Market Hours As Carmaker Delivered 241,300 Vehicles In Q3

The impact of the announcement on the stock was reflected during the pre-market hours; Tesla stock jumped as much as 3.5 per cent with a pre-market high of $802.5.

Tesla’s social engagement amongst the users of Twitter and Reddit can be traced on the dashboard of Quantale as the day progresses. Nevertheless, on the last trading day of the previous week, the social engagement amongst the Twitter and Reddit users declined almost 6 percent combined with a decrease of 5 percent in the trading volume.

On Friday, 17.13 million shares of the stock exchanged hands, 1.77 million below the average of 18.90 million. 

The stock opened at $796.90 on Thursday, up almost 3% from the previous day close of $775.22. In the early normal trading hours, the stock was trading above $800. 

The company outperformed its expectation, contrary to what Founder and CEO Elon Musk had said in July. He hinted at the negative impact of “extreme supply chain limitations regarding certain ‘standard’ automotive chips” on the production rates over the second half of the year.

It was interesting to note that the communique announcing the production and deliveries report marked Tesla’s headquarters in Austin, Texas, on the other hand, Tesla’s website still lists its headquarters in Palo Alto, Calif. In May 2020, Elon Musk confirmed moving Tesla’s HQ to Texas last year through a tweet. 

He wrote: “Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependent on how Tesla is treated in the future. Tesla is the last carmaker left in CA,” Musk wrote. 

At that time, the reopening of the Fremont Factory got support from the Bay Area Council, the mayors of Fremont and Palo Alto, US Treasury Secretary Steven Mnuchin, US President Donald Trump, and House Speaker Nancy Pelosi. Florida, Oklahoma, and Texas officials also supported resuming the Fremont Factory. 

The car making company will soon get its new factory in the Austin area where they may hold an annual shareholder reported CNBC.

Last month, data from the China Passenger Car Association (CPCA) revealed that Musk’s Tesla sold a total of 44,264 China-made electric vehicles in August, including 31,379 units that were earmarked to be sold to other markets. In Shanghai, Tesla’s Model 3 electric sedans and Model Y electric sport-utility vehicles managed to sell 32,968 locally-made vehicles in July and 33,155 units in June.

In the wake of Saturday’s delivery tally, Piper Sandler senior research analyst Alexander Potter, a bull with a $1,200 price target for shares of Tesla, wrote in a note on September 27:

“Tesla’s share of the battery electric vehicle (BEV) market will almost certainly fall – because many peers haven’t started selling BEVs yet. But we fully expect Tesla’s share of the overall market to continue rising, and we stress that declining BEV market share should not be considered a bearish signal… After all, Tesla is competing against vehicles of all types – not just against other electric vehicles.”

Auto Forecast Solutions Vice President Sam Fiorani concurred. He stated, “Tesla has such a head start on the competition in the EV market that it is unlikely for anyone to pass them anytime soon. The Cult of Tesla will keep buyers attached to the brand for years to come. Even Audi and Mercedes are finding it difficult to tap into the same type of aura. While their market share will decrease, Tesla will keep the leadership position for years to come without a major misstep from within the company.”