Tesla Inc. posted less-than planned early-year deliveries from record rates achieved late in 2019, sending the electric vehicle maker's shares rallying 13 percent.
In the first quarter, Tesla rolled out more than 88,400 vehicles worldwide, down 20 percent from 2019's final quarter. But, the number beat analysts' average projection of about 78,100, late Thursday. Shares of the company traded 10 percent to $500.03 in New York on Friday.
The company's delivery figures should be considered as moderately conservative, as it only counts a vehicle "delivered" if it is transferred to the buyer and all documents are correct, Tesla disclosed in a statement.
Tesla's current quarter is a slight retreat compared to the end of 2019 when the company rolled out 112,000 units, but an increase from the second quarter, when it shipped 63,000 vehicles.
It is not shocking to see some declines in deliveries, though. The deadline for Tesla customers to earn a federal tax credit on electric cars was 31 December 2019, so consumers thinking of purchasing a Tesla car had a good incentive to do so before the end of the year.
The company had a similar drop in orders between fourth quarter 2018 and first quarter 2019, partially as a result of earlier measures in a year-long phaseout of the tax credit.
But most importantly, growth is partly indicative of increased efficiency at Tesla's Fremont, California flagship plant. It also reflects Tesla's latest Shanghai plant's productions, which started operations in late 2019.
Last month, Tesla chief executive officer Elon Musk sought to save as much business as possible by launching "touchless" deliveries at a time when regulators across the globe are advising prospective car buyers to take cover.
Although Tesla managed to produce more vehicles than the quarter of the year-ago, the change was small in view of the company launching a new model, the Model Y, and opening a new assembly plant in China.
Tesla did not provide an update on whether it still expects at least half a million vehicles to be delivered this year.
Amid the coronavirus pandemic, several Tesla factories in the US remain closed. The company had to shut down its factory in Fremont, California on March 23 after it was considered "non-essential" industry.
Tesla stock was not immune to the ongoing collapse of the market and increased uncertainty arising from the coronavirus crisis. Even, the stock stayed in the green after an unprecedented rally where, via its all-time peak in February, shares earned more than 200 percent from October 2019.
