U.S. markets closed

Tesla (TSLA) Q1 Deliveries Impress Despite Coronavirus Crisis

Zacks Equity Research

Tesla, Inc. TSLA registered production and deliveries of 102,672 and 88,400 vehicles, respectively, in the first quarter of 2020, marking a year-over-year jump of 56.5% and 40.3%. Notably, this is the company’s best ever first-quarter performance.

The company’s Model S/X division recorded production and delivery volume of 15,390 and 12,200 vehicles, respectively in the quarter. The Model 3/Y division registered production of 87,282 vehicles, while 76,200 vehicles were delivered.

The production of the latest Model Y began in January 2020 and deliveries began in March, significantly ahead of schedule. Furthermore, despite the coronavirus outbreak, Tesla's Shanghai factory managed to hit record production levels.

In 2019, Tesla delivered 367,500 vehicles, reflecting an increase of 50%, year over year, and nearly in line with the company’s full-year guidance of 360,000 vehicles.

With China being the biggest electric vehicle (EV) market, Tesla’s plans to expand production in the country bode well. Per management, the company has already managed to manufacture 1,000 saleable cars at its Shanghai factory, despite breaking ground less than 12 months ago. With more battery production, it will be capable of producing more than 3,000 units a week in the upcoming period.

Moreover, it is aimed at opening Gigafactories in Europe and a few other regions in order to boost output. It also plans to announce the location of its European Gigafactory soon, wherein the company intends to start manufacturing electric vehicles in 2021.

Zacks Rank & Stocks to Consider

Tesla currently sports a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same sector are Fox Factory Holding Corp. FOXF, Blue Bird Corporation BLBD and Adient plc ADNT. While Fox Factory and Blue Bird sport a Zacks Rank #1 (Strong Buy), Adient carries a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Tesla, Inc. (TSLA) : Free Stock Analysis Report
 
Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report
 
Blue Bird Corporation (BLBD) : Free Stock Analysis Report
 
Adient PLC (ADNT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research