Tesla will exceed expectations and deliver more than 170,000 vehicles in Q1: Wedbush Securities

With one day to go in the first quarter of 2021, Wedbush Securities analyst Daniel Ives believes Tesla (TSLA) will exceed delivery expectations in the first three months of the year.

In a note to investors on Tuesday, Ives said that despite a global chip shortage that forced Tesla to shutdown Fremont for two days, he believes Tesla will beat Wall Street estimates of 170,000 deliveries in Q1.

“Despite the chip shortage and some bumps in the road during the quarter, we believe Tesla should exceed the Street’s 170k line in the sand for 1Q and help restore some positive momentum back to Tesla and the EV sector. 

Along with the quarterly estimate, Ives also provided an update to his annual delivery expectations. Earlier this year he was expecting Tesla to increase deliveries from 500,000 in 2020 to 774,000 in 2021.

With a strong first quarter, Ives is now anticipating 830,000 deliveries.

“We are now modeling FY21 total unit annual deliveries to be 830K units vs. our prior number of 774K units. We note that our 3Q/4Q21 total unit delivery estimates have marginally increased and the majority of our model changes are reflected in 1H21 as we had originally modeled a more cautious scenario for 1Q/2Q21 based on the pace of the global re-opening as well as the chip shortage dynamic, which remains an overhang on the broader auto sector.”

In his note Ives maintained his $950 price target and Neutral rating for Tesla (TSLA).

Disclaimer: Darryn is a TSLA shareholder and has no plans to change positions within 72 hours.

Source: Cho Research

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