Why Tesla Inc. Stock Is Trading Higher

By Daniel Sparks Markets Fool.com

What happened

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Shares of electric-car maker Tesla (NASDAQ: TSLA) jumped as much as 5.7% on Monday after the electric-car maker reported first-quarter deliveries. At the time of this writing, shares are up 5.4%, with the stock trading at about $292.

So what

Tesla stock's higher price follows the company's update on first-quarter vehicle deliveries. Tesla delivered just over 25,000 vehicles, up 69% year over year. Of the 25,000 deliveries, about 13,450 were Model S and 11,550 were Model X. This compares to 12,420 and 2,400 Model S and Model X deliveries, respectively, in the year-ago quarter.

Model X. Image source: Tesla.

The deliveries were a record high for Tesla and put the company on track to meet its guidance for 50,000 deliveries in the first half of the year.

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Now what

Tesla's ability to hit the target adds more substance to the company's longer-term, more ambitious growth plans. With the help of a planned Model 3 launch during the second half of 2017, Tesla expects its annualized vehicle production to soar from a current rate of about 100,000 units to 500,000 units next year.

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Daniel Sparks owns shares of Tesla. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.