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Shares of Tesla Inc (Nasdaq: TSLA) are trading down this morning even though the electric vehicles manufacturer reported record deliveries for its fiscal first quarter.

Production beats deliveries again

The Nasdaq-listed firm delivered 422,875 vehicles in its recent quarter – up 4.0% sequentially and beating the year-ago figure by a whopping 112,827 units, as per the press release.

Production went up 44% year-on-year to 440,808 vehicles. In comparison, Tesla Inc had produced 439,701 units in the final quarter of 2022. The EV company related higher production versus deliveries primarily to its rapid growth.

The Austin-headquartered firm will report its full first-quarter results later this month. Consensus is for it to earn 75 cents a share versus 95 cents per share a year ago. Year-to-date, Tesla shares are up 80% at writing.

Are Tesla shares worth buying?

Following the deliveries and production update, Wedbush Securities’ Dan Ives reiterated that investors should buy Tesla shares as they have upside to $225. His research note reads:

The Model Y/3 price cuts implemented early in 2023 have paid major dividends for Musk & Co. as demand appears very solid despite an uncertain macro.

He agreed, though, that the focus remains on gross profit margins. Tesla Inc had lowered prices for its vehicles globally in January.

Last month, the electric vehicles behemoth confirmed that it was setting up a new production facility in Monterrey, Mexico as Invezz reported HERE. It plans on making its next-generation vehicles at the announced factory.

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