April 3 Tesla Inc's shares jumped to an
all-time high on Monday as the electric car maker's record
quarterly vehicle deliveries allayed some concerns over its
production challenges, ahead of the hotly-awaited launch of its
Model 3 sedan.
Tesla's stock climbed as much as 5.7 percent to $294.15,
giving it a market capitalization of $47.92 billion - higher
than Ford Motor's $46.27 billion value and just below
General Motor's value of $48 billion, at their Monday
Tesla said on Sunday it delivered a record 25,418 vehicles
in the quarter ended March, a 69 percent increase from last year
and edging past Goldman Sachs' forecast of 23,500 vehicles.
"This beat shows that they are managing production better
and that it bodes well for the Model 3 to be on time as well,"
said Ivan Feinseth, director of research at Tigress Financial
Tesla delivered 76,230 vehicles last year, but production
challenges kept the result well short of its 80,000- to
That and other setbacks had led investors and suppliers to
predict that Model 3 volume production would be delayed until
But Chief Executive Elon Musk reassured investors in
February that the Model 3 was on track for volume production by
September this year.
The Model 3, a midsize mass-market sedan, had about 373,000
advance reservations as of April last year, and is expected to
go on sale later this year in the United States.
Tesla's shares were up 5.2 percent at $292.77 in afternoon
trading. Ford's shares were off 2.6 percent, while GM's stock
was down over 4 percent following their monthly sales reports.
"(Tesla has) had a pattern of missing their targets and the
fact that they were able to meet the delivery target this
quarter should be warmly received by investors," said CFRA
analyst Efraim Levy.
"It's good news for Tesla, clearly."
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sai