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Tesla's stock rises on record Model 3 and Model Y deliveries

April 5, 2021. Summarized by summa-bot.

Compression ratio: 51.1%. 2 min read.

TILBURG, NETHERLANDS - MARCH 29: A general view of the Tesla Assembly plant building which also does vehicle delivery and has a service centre, on March 29, 2021 in Tilburg, Netherlands. In mid-March, a Dutch online news site reported that the Tilburg plant, which assembles the Tesla Model S and Model X, will cease work due to changes in the production process, jeopardizing around 100 jobs. The company is reportedly in talks with its works council to find new roles for the affected workers. (Photo by Dean Mouhtaropoulos/Getty Images)

No Model S or Model X cars on the Tesla assembly line is apparently no problem for investors.

Friday Tesla revealed it did not build any of its two most expensive models, the Model S sedan and Model X SUV, in the first quarter.

Tesla did not explain why it did not build any of the more expensive models in the quarter.

It said it is ramping up production of the new versions of the Model S and Model X, but in January CEO Elon Musk had promised that Tesla would resume deliveries of the new version of the Model S in February, and the new version of the Model X soon thereafter.

Tesla has been down more than 20% from its record high close of $883. 09, which it hit the day before releasing fourth quarter results that were below Wall Street forecasts.

The fact that Tesla was able build 180,338 of its less expensive models, up from 179,757 cars built in the fourth quarter, was a notable accomplishment, said Dan Ives, tech analyst for Wedbush Securities, who upgraded his recommendation on Tesla shares over the weekend.

"In our opinion the first quarter delivery numbers released on Friday was a paradigm changer and shows that the pent-up demand globally for Tesla's Model 3/Y is hitting its next stage of growth as part of a global green tidal wave underway," Ives wrote.

Morgan Stanley auto analyst Adam Jonas said he still expects the chip shortage to cause Tesla to report a modest drop in second quarter sales, despite its ability to significantly top first quarter forecasts.

Johnson also said profit could be hurt because Tesla probably made about $20,000 in operating profit on each of the more expensive Model S and Model X, and only $4,000 on each Model 3 and Model Y.

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