Tesla, Inc. TSLA reported Deliveries in the first quarter which were slightly above the Street’s estimates.

The Tesla Analyst: Wedbush Analyst Daniel Ive maintained its “Outperform” rating and price target of $225 on Tesla shares.

The Tesla thesis: Tesla’s much-anticipated first-quarter deliveries “beat the boogeyman of the road despite a bleak macro,” Ives said in a note reviewing the latest numbers.

First-quarter deliveries of 422,900 exceeded the Street’s estimate of 421,500 and roughly matched the Whisper count of about 423,000, he noted. The production number of 440,800 units indicates improved global production and capacity “emerging from a still-constrained supply in late 2022,” he said.

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The Model Y/3 price cuts announced in early 2023 have been “paying big dividends” for Tesla as demand looks solid despite an uncertain macro, Ives added. “We believe Chinese consumer demand for Tesla improved during the quarter and key to this was the company outperforming the Bogey of the Road for the March quarter,” he said.

However, given the recent price cuts, the analyst remained cautious on margins. Auto GM north of 20% remains the key dip in the coming quarters, he said.

“This shipment number was a clear step in the right direction and is positive for the bulls digesting these shipments,” Ives said.

Tesla price action: Tesla ended Friday’s session up 6.24% at $207.46, according to Benzinga Pro data.

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