Tesla could surprise with near-record deliveries during the second quarter with stronger than anticipated deliveries despite the restrictions caused by the virus.

During the second quarter, the automotive market took a giant hit everywhere around the globe except in China.

Tesla is no exception since its Fremont factory, where it produces the majority of its vehicles, has been forced to shut down from the end of March to early May.

In fact, this morning Tesla's stock price target was raised at Deutsche Bank ahead of deliveries, and production update.

Shares of Tesla gained 0.8% in premarket trading Friday, after Deutsche Bank analyst Emmanuel Rosner raised his price target to $900 from $850 ahead of the electric vehicle maker's second-quarter deliveries and production update. Rosner kept his rating at hold, as his new target is 8.7% below Thursday's closing price of $985.98. "Despite about 7 weeks of downtime at the Fremont plant, we think Tesla's 2Q global production could be in the mid-70K range, ahead of buy-side consensus in the mid-60s," Rosner wrote in a note to clients. Meanwhile, he doesn't believe Tesla was able to reach full Model Y production, and estimates about 10K-13K vehicles were made during the quarter. Tesla is slated to report deliveries and production next week, with Rosner saying it will likely be on July 2. Tesla's stock has more than doubled year to date (up 136%), while the S&P 500 has lost 4.6%.

It'll be even more surprising if Tesla posts a profit, then Tesla shareholders will have their first 4 quarters of profit in a row.

It looks like Tesla is very busy with car deliveries and Elon Musk’s end-of-the-quarter push is working.

A user, named Wardencliffe writes on Electrek’s discussion board how busy Tesla seems to be, describing her Model Y experience. “I had my Model Y delivered Monday after a one day delay which was disappointing as I had intentionally scheduled it for fathers day and invite family over to celebrate the delivery,” he writes. “After the delivery, I then got a flat on the way home and had to have it towed back to the service center and get a ride home again leaving my welcome party in the cold. The next day Tesla fixed the tire and I was all set. I can say that the delivery center in Bellevue WA was extremely busy both days I was on site. The only open delivery times were the day it arrived on Monday or today on Thursday. The Seattle area is being flooded with the Model Y. So much fun to drive!”

Take note, however, that Q2 2020 results will not solely depend on delivery numbers. Based on Tesla’s performance this quarter, however, that may be good news. The company has been able to focus on key factors that could boost the second quarter even further.

For instance, Tesla's released some features to its Full Self-Driving (FSD) suite in Q2, which may allow TSLA to include some FSD revenue into its income statements. Tesla Energy appears to be working hard in the background as well. Overall, TSLA started the quarter in a seemingly less than favorable position but seems to have turned it around.

Since this report was about Tesla’s performance and somewhat about the stock as well, please, note that I don’t own any shares in Tesla and am not in the stock market. This report is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this report constitutes a solicitation, recommendation, endorsement, or offer by me, Torque News, or any third party service provider to buy or sell any securities or other financial instruments.

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This is Armen Hareyan from Torque News. Please, visit us at [ Ссылка ] for daily car sector news and follow us on Twitter at [ Ссылка ] for daily automotive sector tweets. And if you would like to support our channel, I would really appreciate buying us animated applause once a month by clicking on the applaud button, which is next to the Like button, if you are watching this video on a desktop. You can go to [ Ссылка ] for our daily Tesla news coverage.


Reference
Electrek [ Ссылка ]
Marketwatch [ Ссылка ]
Tesmanian [ Ссылка ]

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