Please ensure Javascript is enabled for purposes of website accessibility

Why Tesla Stock Soared Friday

By Daniel Sparks – Updated Apr 3, 2020 at 10:28AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

First-quarter deliveries jumped 40% year over year.

What happened

Shares of Tesla (TSLA 1.72%) jumped on Friday, climbing as much as 13.4%. By 10:10 a.m. EDT, the stock was up 7.4%.

The stock's gain came after the company released first-quarter delivery numbers that were far ahead of analysts' consensus forecast for the period.

The interior of a Tesla Model 3.

Image source: Tesla.

So what

The electric-car company delivered 88,400 vehicles during Q1, up 40% from the year-ago quarter. But deliveries were down 21% sequentially, reflecting the impact of the COVID-19 pandemic on Tesla's business. Early in the quarter, production at the company's new factory in Shanghai was temporarily suspended, but it restarted in February. Production at the company's factory in California didn't stop until the last week of the quarter.

Analysts on average were expecting 79,900 deliveries during the period, although this consensus was based on recently lowered estimates as analysts tried to take into account the impact of COVID-19 on production and sales. 

Now what

Surprisingly, Tesla didn't reduce its full-year outlook for vehicle deliveries. Going into the year, management had said it expected total 2020 deliveries to exceed 500,000. To hit this figure, of course, production at the company's U.S. factory will need to resume. It wouldn't be surprising if Tesla eventually lowers its full-year outlook.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tesla, Inc. Stock Quote
Tesla, Inc.
TSLA
$287.81 (1.72%) $4.87

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.