Matt Britzman, Senior Equity Analyst at Hargreaves Lansdown, has commented on the Q1 Tesla deliveries.
Tesla’s latest delivery figures came in a little light, missing consensus and sending shares lower in early trading. On the face of it, this was a softer print, not just for deliveries but also for energy deployments, which came in below expectations. That tends to be a lumpy business, so it is hard to read too much into it until we get more detail on the next earnings call.
There were some positives from the auto business, though, with year-on-year improvement in the first quarter without EV tax credits, suggesting a solid level of underlying demand. The higher production figure also suggests a degree of management confidence as we move into the next quarter, so all in all, it’s a modest miss that’s unlikely to sway too many opinions.
As ever with Tesla, a few thousand cars either way is unlikely to move the dial on valuation. The bulk of the investment case rests on what is coming next rather than where the core auto business sits today. On that front, the Robotaxi rollout has been a little underwhelming so far, and investors will be hoping for a more positive flow of news in the coming months. That future growth pipeline remains central to supporting what is still a lofty valuation.
The author holds shares in Tesla.
