This year, Tesla has been having a more challenging time on Wall Street. As of Monday, its stocks had lost more than 9% so far this year. However, Tesla shares posted sharp gains on Monday after the electric vehicle maker announced a record number of units delivered in the first quarter of the year. Tesla climbed 4.4% to $691.05 Monday after reporting solid deliveries. In the early stages of the session, the company gained more than 6%.
This Monday was the first trading day since Tesla announced on Friday 184,800 vehicle deliveries during the first quarter. It was a new record for the company, and a figure was clearly above analysts’ expectations.
Besides, during those three months, Tesla produced 180,338 units at the top of the range predicted by experts. The production focused only on its Model 3 and Model Y, more affordable than the Model S and Model X.
The company highlighted the excellent reception that the Model Y has in China, where the American company’s sales doubled last year.
The announcements prompted several brokerage firms to substantially raise Tesla’s stock price target, encouraging investors to buy.
During 2020, Tesla shares increased by 700%. It made the company one of the largest in the United States by market value and Musk one of the world’s wealthiest people.
This year, however, the company is having more difficulties on Wall Street.
With a market capitalization of about $663 billion, Tesla is the most valuable automaker on the market. However, its production and sales are small-scale compared to those of the largest companies in the industry.
Top stocks in the buy zones now
After Monday’s record highs, Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures traded lower in the early trading session on Tuesday. While Tesla posted strong deliveries, tech giants like Alphabet, Microsoft, and Facebook are in new buy zones.
The tech-heavy Nasdaq composite increased by 1.7%. The S&P added 1.4%. Meanwhile, the Dow Jones Industrial Average gained 1.1%.
Apple was among the Dow Jones leaders. The company’s shares surged by 2.4% Monday. Meanwhile, Microsoft posted increases of 2.8%. Boeing left the buy zone after last week’s bullish move.
Chip leaders Nvidia and Qorvo are near the buy zones now. This week’s Stocks Near A Buy Zone column featured these companies.
Monday’s IBD live show discussed Alphabet and Microsoft.
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