Tesla Is 'Crushing The Auto Industry', Munster Says, As Company Posts Q1 Delivery Figures

Loup Ventures Managing Partner Gene Munster on Thursday said Tesla Inc. TSLA "is crushing the auto industry," generating significantly higher demand than its competitors.

What Happened

Tesla earlier in the day reported 88,400 deliveries and 102,672 total production in the first quarter this year, beating analyst estimates.

Munster noted that Tesla's delivery numbers are up 40% year-on-year in the first quarter, at a time when the overall United States auto industry numbers are down 29%.

"Tesla is winning because they have a product that is measurably better than both gas and electric competitors," the former research analyst said.

What's Next

The electric vehicles maker didn't update its guidance for the deliveries for the entire financial year 2020, over the previous one of 500,000 deliveries. It also didn't give an estimate of its expectations for the second quarter.

Loup Ventures would give their estimate for the second quarter when there's better clarity surrounding the novel coronavirus (COVID-19) pandemic.

Munster reiterated his earlier stance that during the pandemic, Tesla's performance relative to other automakers matters more than its performance on absolute terms.

According to him, Tesla will continue to beat other automaker delivery results by 15% to 25% in the rest of the three quarters this year, even as things get more difficult for the overall industry.

If the pandemic's impact is eased by October, Tesla will see a "dramatic bounce back" in the fourth quarter, as per Munster.

"The biggest unknown will be production contribution from Shanghai, which is still in the early ramp phase," he added.

Tesla's Fremont and New York manufacturing plants are closed for production due to shelter in place orders from local authorities during the pandemic. The company is working at a reduced staff in the Nevada gigafactory.

Price Action

Tesla's shares surged 17.72% in the after-hours session at $535 after closing the regular session, 5.63% lower at $454.47.