Shares of Tesla (TSLA 0.27%) soared on Monday. The stock rose as much as 7%. At 10:15 a.m. EDT, however, shares were up 4.6%.
The growth stock was up following the electric-car maker's first-quarter vehicle deliveries report over the weekend. The company reported deliveries for the period that crushed analysts' estimates, giving investors more confidence in Tesla's growth trajectory.
Tesla delivered 184,800 vehicles during Q1, up nearly 110% year over year. Analysts were expecting deliveries to be closer to 170,000. This growth was an acceleration from year-over-year growth rates of 61% in the fourth quarter of 2020 and 44% two quarters ago.
"We are encouraged by the strong reception of the Model Y in China and are quickly progressing to full production capacity," Tesla said in a press release about the deliveries.
The strong first quarter sets Tesla up well for its target to deliver over 750,000 vehicles this year -- up from approximately 500,000 deliveries last year.
The strong deliveries highlight how Tesla has continued to rapidly ramp up production of the Model 3 and Model Y -- its two lower-cost vehicles. Tesla produced 180,338 of the two vehicles, up from 163,660 in the fourth quarter of 2020.
Model S and X production, however, halted during the quarter. But that was because Tesla was bringing online entirely new versions of the pricier vehicles, which have been "exceptionally well received," Tesla said in its update. Production equipment for these vehicles was installed and tested in Q1, and Tesla is now in "the early stages of ramping production."