Please ensure Javascript is enabled for purposes of website accessibility

Why Tesla Stock Jumped on Monday

By Daniel Sparks – Oct 4, 2021 at 10:42AM

Key Points

  • Deliveries during the period were well above analyst estimates.
  • The record quarter captures Tesla's incredible momentum, with deliveries up 73% year over year.
  • The strong deliveries should make it easy for Tesla to achieve its full-year vehicle delivery guidance.

Motley Fool Issues Rare “All In” Buy Alert

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

So much for supply constraints and logistics challenges leading to a bad quarter for the electric car maker.

What happened

Shares of electric car company Tesla (TSLA -0.19%) jumped on Monday. The stock was up 3.9% as of 10 a.m. EDT.

The growth stock's gain was driven by the company's better-than-expected third-quarter vehicle deliveries. Record deliveries during a challenging operating environment put the spotlight on the company's strong execution recently.

Model 3 interior.

A Tesla Model 3. Image source: Tesla.

So what

Over the weekend, Tesla announced that it delivered more than 241,300 vehicles in Q3. Highlighting the automaker's staggering growth, this was a huge sequential jump from the approximately 201,000 vehicles Tesla delivered in the prior quarter and 140,000 in the year-ago period. 

On average, analysts had forecast Tesla would deliver closer to 221,000 vehicles during the quarter. 

"We would like to thank our customers for their patience as we work through global supply chain and logistics challenges," Tesla said in a press release about the deliveries.

Now what

The strong quarter puts Tesla's full-year guidance for more than 750,000 deliveries in 2021 within reach. The company has now delivered more than 627,000 vehicles this year, leaving only 123,000 to deliver in the final quarter of the year.

It's safe to say that Tesla's target to grow deliveries more than 50% this year is pretty much in the bag.

Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies 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 Stock Quote
$182.86 (-0.19%) $0.34

*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
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/26/2022.

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.