Tesla Inc. shares surged 8% in early trading after the electric vehicle maker reported record first-quarter deliveries that handily beat Wall Street expectations, putting to rest fears of a demand slowdown.
Delivery Numbers
The company delivered approximately 485,000 vehicles in the quarter, surpassing the consensus estimate of 455,000. The Model Y continued to be the primary volume driver, while the updated Model 3 also contributed meaningfully to the beat.
Price Stability
Importantly, Tesla achieved the delivery beat without resorting to the aggressive price cuts that had characterized much of 2024. Average selling prices held steady, which analysts said bodes well for margins in the upcoming earnings report.
Energy Business Growth
Tesla's energy storage division also posted impressive numbers, with Megapack deployments reaching new highs. The energy business is increasingly being viewed by analysts as a significant growth driver that deserves its own valuation multiple.
"This quarter puts the demand narrative firmly back on track," wrote a leading EV analyst. "Tesla is executing well across all segments and the stock deserves to trade at a premium to reflect its multiple growth vectors."
The stock is now up over 25% from its recent lows, though it remains well below its all-time highs reached in late 2021.