The company delivered over 184,000 electric vehicles in the first quarter
The shares of Tesla Inc (NASDAQ: TSLA) rise 4.5% this morning to $ 691.68 on its final check-up after the electric vehicle giant hit a record shipments of 184,800 units in the first quarter – well above Wall Street’s estimates of 177,822 deliveries. The tech name attributed the milestone to strong demand, which helped offset the effects of a global auto parts shortage.
In addition, Wedbush has upgraded the security from “neutral” to “above average” and raised its price target from $ 950 to $ 1,000. Cowen and Company and JP Morgan Securities followed suit, handing out price increases to $ 573 and $ 155, respectively. Analysts were pessimistic about security today and left the door open for further price increases and / or upgrades in the future. Of the 20 in question, 12 named it “hold” or worse. Additionally, the 12-month consensus target of $ 621.60 is a significant 10.3% discount off the current level.
Security has taken a giant step back from its all-time high of $ 900.40 on Jan. 25. Stocks struggled with overhead pressures at the $ 720 level last month, though the 160-day moving average could include two pullbacks in March. Today’s pop also helped safety get back above the 20-day moving average, and the TSLA is up 622.5% year over year.
While the shorts are already taking the exits, there is still a lot of pessimism to unwind, which could propel stocks even further. Short rates fell 6.2% in the last two reporting periods. The 44.73 million shares sold, however, accounted for 25% of the stock’s available free float.
Additional tailwind could result from a shift in the option pits. This corresponds to the 50-day put / call volume ratio of Tesla shares on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX), which is in the 84th percentile of their annual range . In other words, long puts are picked up faster than usual.
Additionally, TSLA options are currently available at a discount. The Schaeffer’s Volatility Index (SVI) of 57% is in the low 8th percentile of its annual range. This suggests that equity currently has bonuses at attractive prices.
After all, security is Schaeffer’s Volatility Scorecard (SVS) is at a high 95 out of 100. This means that Tesla stock exceeded volatility expectations over the past year – a good thing for premium buyers.