Tesla Q1 Deliveries "Beat" Rapidly Falling Market Estimates But Miss Management Guidance

Tesla managed a late hour surge needed to "beat" rapidly falling market estimates, but results still shy of management's target for more than 37% y/y growth (and abandoned goal for more than 50% y/y).

Tesla TSLA 0.00%↑ reported first quarter deliveries at 422,875, up 36.4% y/y and a nudge higher versus rapidly changing market consensus which has plunged almost daily in recent weeks from more than 440,000 (up 42%) early in the quarter to 421,164 (up 35.8%) as of Friday.

Another strong quarter, yes, but results missed of management’s targeted track for at least 37% y/y growth for the year, increasing pressure for the next three quarters.

No wonder Tesla has backed off two years of guidance calling for better than 50% y/y annual growth in deliveries. Sales haven’t been even close to that level in now four straight quarters.

That's because, as I have warned, growth is increasingly hardwon, and only possible this quarter after several more successive rounds of aggressive price cuts and costly incentives which, as we saw in the fourth quarter, have pulled demand forward instead of generating sustainable growth.