Tesla shares are up 10% to $US153.31, after the car maker announced 6,900 deliveries in the fourth quarter.
The VP of sales said at the Detroit Auto Show that this is up 20% from previous guidance.
In its Q3 earnings report, Tesla said it expected to deliver fewer than 6,000 vehicles in Q4.
This is up from the 5,500 Model S vehicles delivered last quarter when Tesla was producing 550 cars per week. Tesla’s stock took a beating at the time because Model S deliveries missed analyst expectations.
Q4 demand was given a nice boost by “the superlative safety record of the Model S and great performance under extremely cold conditions,” according to a press release.
CEO Elon Musk has previously said Tesla was “production constrained” not demand constrained. Supply bottle necks have weighed on the stock and Tesla’s partnership with Panasonic seems to have paid off, as the higher than expected number of cars were manufactured because of “an excellent effort by the Tesla production team and key suppliers, particularly Panasonic.”
Tesla did not issue 2014 guidance but it did say that its “sales and service footprint should double in 2013,” according to Bloomberg.
Baird has raised Tesla to outperform with a price target of $US187, Stifel Nicolaus’ Dave Lutz told Business Insider.
Here’s a look at the surge immediately after the announcement.