Tesla, Inc. reported Saturday record quarterly deliveries despite the surrounding turbulence. An analyst at Wedbush Securities sees the performance as "massive."
The Tesla Analyst:Daniel Ives maintained an Outperform rating and $1,000 price target for Tesla shares.
The Tesla Thesis:Tesla's third-quarter deliveries of 241,000 beat even the bull-case whisper number on the Street, analyst Ives said in a note. The strength, the analyst said, was driven byrobust Model 3/Y salesof 232, 000.
Total production in the quarter was 238,000, about 10,000 ahead of Wedbush's and Street estimates, the analyst said.
"Taking a step back, with the chip shortage a major overhang on the auto space and logistical issues globally, these delivery numbers were "eye-popping" and speak to an EV demand trajectory that looks quite robust for Tesla heading into 4Q and 2022," Ives wrote in the note.
Wedbush's estimate of 150,000 deliveries for September, according to the analyst, is a clear indicator of the green tidal wave taking hold for Tesla across the board. China demand may have rebounded in the quarter and will be a focus for the bulls digesting these results, he added.
"In a nutshell, these numbers are hard to poke holes in and will be a major feather in the cap for the bulls on Monday morning and should improve broader sentiment on the EV space as a whole," Wedbush said.
Tesla Price Action:Tesla shares closed Friday's session down 0.03% at $775.22 and were down an incremental 0.03% in after-hours trading.