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KeyBanc projects 50% jump in Tesla’s Model 3 deliveries

Tesla seems to be seeing the light at the end of the tunnel if reports are to be believed from KeyBanc Capital Markets. The analyst firm expects the much-anticipated Model 3 deliveries for the second quarter to jump 50% from 20,000 to 30,000 based on the interactions held with 20 Tesla dealers.

Brad Erickson who is covering Tesla (TSLA) for KeyBanc is also gung-ho about the annual Model 3 deliveries. Erickson expects the full-year deliveries to jump 20% to 118,182 cars.

It’s worth noting the electric car maker has been struggling to beef up its Model 3 production for some time. Last week in its shareholder meeting, Elon Musk sounded optimistic in hitting the enigmatic 5,000 mark/week target by the end of June. He also added that by July end, Tesla aficionados can test drive Model 3 across North America.


According to Erickson “Long-term thesis on TSLA unchanged”. He also added, “we maintain that evidence supporting the bear case is not likely to emerge in the near term, in our view.”

On the flip side, one of the Tesla employees testified on Monday before the National Labor Relations Board (NLRB) that he has been asked to leave the factory by security guards when he was distributing leaflets to form a union. United Automobile Workers (UAW) and three employees have lodged a complaint with NLRB and the board has taken the case to an administrative law judge. The company has refuted these claims with Elon Musk himself last month tweeted that he didn’t have any issues about the union formation within Tesla.

“Nothing stopping Tesla team at our car plant from voting union.”

The case hearings are going to continue till Thursday and expected to start again in September. Post the hearings, judgment is expected to be pronounced. If the judgment goes against Tesla, it would create bad press amongst employees about its unfriendly labor practices. This would make the life tougher for Musk and his team, which has been already struggling with production issues.

Tesla reported 26% jump in top line beating analyst estimates and better-than-expected loss numbers for the first quarter. However, the cash reserves declined 21% to about $2.67 billion, which has been a worrying sign for investors. The company was hopeful of reviving its fortunes with Model 3 rollout, which is expected to improve its margins. Buoyed by the Model 3 delivery estimates, Tesla stock reached its 3-months high in today’s morning trading session.  The company’s shares are up nearly 11% this year.

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