Tesla Spearheaded after Quarterly Deliveries Beat Again, No Matter What Skeptics Say

Shares of Tesla (TSLA) rose 6.38% to $278.32 on premarket today after quarterly deliveries topped expectations, suggesting CEO Elon Musk's plan to boost sales through price discounts is working. The leading U.S. electric carmaker is expected to increase its market value by about $50 billion to $900 billion, based on changes in market share before the listing. Tesla reported 466,140 deliveries for Q2 2023 (in Q1 2023, Tesla reported 422,875 deliveries, and Wall Street was expecting Tesla to report deliveries of 445,924 for the period ending June 30, 2023), and production of 479,700 vehicles. With this pace of production and deliveries, Tesla’s inventories wouldn’t be a big problem for the company anytime soon.

The price cut helped the company deliver 466,140 vehicles between April and June, up 10% from the previous month and 83% from a year earlier. The gap between the number of vehicles Tesla produced and shipped in the second quarter also narrowed to 13,560 vehicles from 17,933 in the previous three months.

The stock so far enjoys a median price target, across top analysts’ recommendations, of $210, down about 20% from its last close. Meanwhile, Tesla's forward P/E ratio is around 62.9, well above Ford's 8.82 and close to Amazon's 62.66.