Tesla's Q1 Delivery Figures Boost Shares Over $292, But Baird Is Targeting The $368 Handle

Tesla Inc TSLA announced it delivered a little over 25,000 vehicles in the first quarter, in line with expectations. The company appears to be on track to meet or exceed its guidance for the first half of 2017, which could lend upside to shares, Baird’s Ben Kallo said in a report.

Tesla’s continued execution would allow investors to focus on the Model 3, moving shares higher. While reiterating an Outperform rating on the company and a price target of $368, Kallo commented, “We continue to believe shares will make new highs in 2017 with progress towards Model 3 production and the gigafactory production ramp.”

Strong Q1 Deliveries

Tesla reported deliveries of around 25,000 for Q1, including ~13,500 of Model S and ~11,600 of Model X. The total deliveries were marginally ahead of Baird’s estimate of 24,980. Total deliveries grew ~13 percent sequentially, with Model S deliveries up ~6 percent and Model X up ~22 percent.

Tesla produced 25,418 vehicles in Q1, up ~2 percent from 24,882 in Q4, “which was a quarterly record,” Kallo noted.

“Strong Model X delivery increase shows continued gains in production efficiency of the vehicle, which has been a long-term bear argument,” the analyst commented. He added that the Q1 release was “another de-risking event for the stock.”

At last check following the record-setting production figures announcement, shares of Tesla were up 5.24 percent at $292.89.

Update: The stock closed at $298.52, up 7.2 percent.

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Tesla Charges Higher After Setting Production Record _______ Image Credit: By Rear Tesla Model 3.jpg: Steve Jurvetsonderivative work: Mariordo (Mario Roberto Durán Ortiz) - This file was derived fromRear Tesla Model 3.jpg:, CC BY 2.0, via Wikimedia Commons