Tesla Stock Will Be In Spotlight On Monday After Q1 2021 Production & Deliveries Report

Tesla Video 02.04.21.

Tesla’s Q1 Deliveries Exceeded Analyst Expectations

The stock market is closed today for Good Friday, but Tesla investors have a chance to take a look at the company’s first-quarter production & delivery data.

In the first quarter of 2021, Tesla produced 180,338 vehicles and delivered 184,800 vehicles. The company stated that it was encouraged by strong reception of the Model Y in China and noted that it was quickly progressing to full production capacity.

The delivery data exceeded analyst expectations, but it remains to be seen whether the market will view Tesla’s deliveries as sufficient enough to justify the current stock price levels. The electric vehicle market is growing fast, so traders may start to pay attention to Tesla’s market share as competition is actively working to catch up with the market leader.

What’s Next For Tesla?

Tesla shares gained some upside momentum in recent trading sessions after Treasury yields declined from highs and U.S. President Joe Biden unveiled his infrastructure plan.

The solid deliveries report and indications of strong demand in China may serve as additional bullish catalysts for Tesla shares and help them get above the major resistance level at the 50 EMA at $690.

At the same time, it should be noted that market expectations are often different from analyst expectations. Analysts expect that Tesla will report earnings of $4.14 per share in 2021 and $5.6 per share in 2021, so the stock is trading at 118 forward P/E for 2022.

At such valuation levels, fluctuations in the company’s market capitalization depend on market mood, so a seemingly strong report may be viewed as a disappointing report by over-optimistic markets.

I’d also note that Tesla shares are trading about 25% below the all-time high levels that were reached in January 2021, so they remain in the bear market. A move out of the bear market may attract more speculative traders and provide an additional boost for Tesla stock.

For a look at all of today’s economic events, check out our economic calendar.