Tesla Q1 Deliveries Weathered 'Murky Marco,' Says Analyst — Why It's Positive For Bulls

Tesla, Inc. TSLA reported first-quarter deliveries that were slightly ahead of the Street's estimates.

The Tesla Analyst: Wedbush analyst Daniel Ives maintained his "Outperform" rating and $225 price target for Tesla shares.

The Tesla Thesis: Tesla’s highly anticipated first-quarter deliveries beat the “Street’s bogey despite a murky macro,” said Ives, in a note reviewing the latest figures. 

First-quarter deliveries of 422,900 exceeded the Street's 421,500 estimate and were about in line with the whisper number of about 423,000, he noted. The production number of 440,800 units points to improved global output and capacity "coming out of a still supply constrained end of 2022," he said.

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The Model Y/3 price cuts announced in early 2023 have “paid rich dividends” for Tesla, as demand appears solid despite an uncertain macro, Ives added. “We believe China consumer demand improved during the quarter for Tesla and was key to the company exceeding the Street's bogey for the March quarter,” he said.

The analyst, however, remained wary of margins, given the recent price cuts. Auto GM north of 20% remains the key threshold over the coming quarters, he said.

“This delivery number was a clear step in the right direction and is a positive for the bulls digesting these deliveries,” Ives said.

Tesla Price Action: Tesla ended Friday’s session 6.24% higher at $207.46, according to Benzinga Pro data.

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