Here’s why the Tesla (NASDAQ:TSLA) share price soared 13% overnight

Record deliveries from the electric vehicle maker place the company’s shares in investor good books…
The post Here’s why the Tesla (NASDAQ:TSLA) share price soared 13% overnight appeared first on The Motley Fool Australia. –

The Tesla Inc (NASDAQ: TSLA) share price caught a strong updraft overnight, flying 13.5% higher during the Monday night session.

After the dust had settled on United States equities, the electric vehicle (EV) manufacturer had reclaimed a US$1,200 share price. As a result, the company is a mere 4% gain away from setting a new 52-week high.

Sudden exuberance flowed into Tesla shares overnight after the EV giant released its fourth-quarter production and delivery numbers over the weekend. Remarkably, the carmaker managed to far exceed delivery expectations, creating heightened optimism towards the Tesla share price last night.

Record breaker for deliveries

Shocking both Wall Street analysts and Tesla bulls, Elon Musk and his team achieved Q4 2021 delivery numbers of 308,600. This number represented a 71% increase in deliveries compared to the prior corresponding period. Prior to the announcement, analyst estimates were for 267,000 deliveries in Q4.

Additionally, the final quarter numbers brought the company’s 2021 year total to 936,172 deliveries. Positively, this reflected a rise of 87% compared to the previous year’s number. Investors reacted to the news by bidding the Tesla share price higher last night.

The impressive figures mark the sixth consecutive quarter in which Tesla has posted record deliveries. This is despite the EV maker contesting with chip shortages in recent times.

Tesla’s quarterly delivery numbers have swayed analyst price targets following the press release. At least eight of 41 analysts covering the company have revised their targets upwards. One of which was Emmanual Rosner of Deutsche Bank, increasing his target to US$1,200 from US$1,000.

What’s next for the Tesla share price?

For Tesla, production and delivery numbers are a precursor to the company’s earnings report. Shareholders will be watching keenly over the coming weeks as Tesla gets set to post its official financials for the fourth quarter.

These financials will provide the market with additional insights into Tesla’s profitability, as well as the growth of other business segments. According to analyst consensus, the company is expected to post earnings per share (EPS) of US$1.94.

The post Here’s why the Tesla (NASDAQ:TSLA) share price soared 13% overnight appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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