Tesla shares surge on record electric cars deliveries in first quarter

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FILE PHOTO: Visitors wearing face masks check a China-made Tesla Model Y sport utility vehicle (SUV) at the electric vehicle maker’s showroom in Beijing, China January 5, 2021. REUTERS/Tingshu Wang/File Photo

(Reuters) – Shares of Tesla Inc surged nearly 8% in pre-market trading on Monday, after the world’s most valuable carmaker posted record deliveries as a solid demand for its electric cars offset the impact of a global shortage of chips.

The electric-car maker said on Friday it was encouraged by the strong reception of its Model Y crossover in China and it was quickly progressing to full production capacity.

Tesla’s ability to produce roughly the same amount of vehicles in the first quarter as in the fourth quarter “stands out relative to the trend in global light vehicle production”, J.P.Morgan analysts wrote in a note.

Tesla delivered 184,800 vehicles globally during the first quarter of 2021, above estimates of 177,822 vehicles, according to Refinitiv data.

Shares of Tesla were up nearly 8% at $714 in trading before the bell, while other EV makers, including NIO Inc and Workhorse Group, were up between 1% and 4%.

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