INTERNATIONAL - Tesla Inc shares rose almost 3 percent in early trade on Wednesday, with analysts still divided on the electric-car maker’s chances of meeting delivery and production targets in the months ahead, after comments by Chief Executive Officer Elon Musk at an annual shareholder meeting.
Musk told shareholders on Tuesday that Tesla was on track to hit its volume production goal for the end of this year and had “a decent shot at a record quarter on every level”.
A 31 percent fall in first-quarter deliveries stirred concern among investors over the appetite for Tesla’s Model 3 sedans and its cash flow as it invests to ramp-up output and get cars out to customers on time.
Tesla has said previously it plans to deliver 90,000 to 100,000 vehicles to customers in the second quarter, up from 63,000 vehicles in the first. Musk said it was on course to deliver a targeted 360,000 to 400,000 vehicles in 2019.
Baird analyst Ben Kallo, rated four out of five stars for his accuracy on estimates for Tesla, believes “bear arguments will be disproven in the coming weeks and months”.