Please ensure Javascript is enabled for purposes of website accessibility

Why Tesla Stock Jumped Sharply on Monday

By Daniel Sparks - Apr 5, 2021 at 10:31AM

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

The electric-car company is seeing accelerated growth -- and investors love it.

What happened

Shares of Tesla (TSLA 5.71%) 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.

A chart showing a stock price rising sharply

Image source: Getty Images.

So what

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.

Now what

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."

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
$769.59 (5.71%) $41.59

*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 service.

Stock Advisor Returns
345%
 
S&P 500 Returns
119%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/16/2022.

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.