Second quarter forecasts for Tesla came out earlier this week and a Wall Street analyst predicts that Tesla has experienced a bullish run that will see them having delivered over 40,000 Model 3 vehicles in the second quarter.
The California-based electric vehicle firm had said it expected to get 90,000 to 100,000 cars to customers, a target that was described as "aggressive" and that many expected it would miss.
CEO Elon Musk has said Tesla will lose money in the second quarter but predicted profits in future quarters. Even Osha himself has lowered his figures as far as his expectations of the deliveries that Tesla is likely to make in the remaining quarters of this year.
Shares of the company rose 7.6% in after-hours trading after the deliveries were announced. USA consumers raced to take advantage of a US$3,750 federal tax credit before the incentive dropped to US$1,875 as of July 1.
A big challenge for Tesla has been how to deliver its vehicles efficiently and swiftly to customers around the world.
The market is underestimating quarterly Model 3 volumes, as demand in the US recovers, and Tesla had three full months of exporting the auto, JMP Securities' Joseph Osha wrote in a note to clients.
Tesla delivered 77,550 Model 3s in the quarter, the company's latest sedan and linchpin of the company's growth strategy. That was despite the fact that the $7,500 US federal tax credit was cut in half at the end of previous year. We believe we are well positioned to continue growing total production and deliveries in Q3.
Cowen analyst Jeffrey Osborne wrote in a note to investors Tesla's full-year guidance of 360,000 to 400,000 deliveries "reflects an extremely optimistic" second half. This in turn is said to generate cost efficiencies and improvements to Tesla's working capital position.
Ahead of the release, Barron's had issued the reminder that Tesla had previously told its shareholders that it expected second quarter deliveries of between 90,000 and 100,000 vehicles.
Overall, total production rose 13% to 87,048 vehicles compared with the first quarter. The electric vehicle producer reported ($4.10) earnings per share (EPS) for the quarter, missing the Zacks' consensus estimate of ($2.51) by ($1.59).
JMP's total unit delivery estimate for the quarter is 97,000, "with all of the upside coming from Model 3 volume", Osha said.