Shares of Tesla are surging over 8 percent after the company reported strong vehicle sales in the first quarter on Friday.
Tesla delivered 10,030 vehicles during the first quarter, beating previous guidance of 9500. Analysts were praising the report, which was released over the holiday weekend.
"We
reiterate Outperform rating and $275 target price following
TSLA’s announcement it delivered over 10k vehicles during Q1 beating
both our/Street delivery estimates as well as TSLA’s guidance," Baird
analyst Ben Kallo said in a note this morning. "We see a string of
positive catalysts ahead. We would be buyers and TSLA remains our
favorite pick."
Kallo also
praised the increased transparency on display by the company, "We think
their decision to change reporting is just as good as the delivery beat.
TSLA will now report deliveries within three days of the end of
each quarter. This is a good decision as it will reduce speculation and
erroneous reports of demand during the month between the end of the
quarter and quarterly report."
Brad Erickson of Pacific Crest Securities also reiterated his outperform rating.
"We
continue to believe that TSLA shares have weathered undue pessimism
recently on account of oil pricing, woes in China,
longer-term competitive concerns and skepticism around execution risk."
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