Tesla (TSLA) is surging on the first trading after it released its delivery results, which the market had three days to digest.

A new bull run is in sight.

Last Friday, Tesla released its delivery and production results – confirming that it delivered a record of over 184,000 vehicles.

It was significantly higher than most analysts’ expectations, but we couldn’t see the impact on Tesla’s stock since it was Good Friday and the markets were closed.

Today, Tesla is opening up by as much as 8% in pre-market trading – adding $50 billion to the electric automaker’s market capitalization.

Wall Street, which clearly underestimated Tesla this quarter, is also digesting the results today, and one top analyst sees the record deliveries as a critical moment.

Dan Ives, a Wedbush analyst who is also one of the top rated analysts on Wall Street based on TipRanks’ rankings, came out with a new note to clients saying that the tide is turning for Tesla’s stock:

“While the EV sector and Tesla shares have been under significant pressure so far this year, we believe the tide is turning on the Street and the eye popping delivery numbers coming out of China cannot be ignored,”

Tesla’s stock (TSLA) has been under-performing compared to some industry peers, which has been something quite rare over the years.

Companies like Volkswagen and GM saw their stocks soar this year on the strength of their electrification plans, but the delivery numbers show Tesla is still dominating in some important markets, like China, as mentioned by Ives.

In the release of the results, Tesla noted that they were “encouraged by the strong reception of the Model Y” in China. The automaker doesn’t breakdown deliveries per market, but China is expected to have contributed a lot to Tesla’s record deliveries this quarter.

China is increasingly becoming a critical market for electric automakers and Tesla has been dominating there with the Model 3 since last year.

Now it could be doing the same with the Model Y.

The Q1 2021 delivery results made Ives increase his delivery estimate for Tesla this year to 850,000 to 900,000 vehicles:

“The 1Q delivery numbers released on Friday was a paradigm changer and shows that the pent-up demand globally for Tesla’s Model 3/Y is hitting its next stage of growth as part of a global green tidal wave underway. We now believe Tesla could exceed 850k deliveries for the year with 900k a stretch goal, despite the chip shortage and various supply chain issues lingering across the auto sector.”

Wedbush holds a $1,000 price target on Tesla’s stock, which represents an healthy 30% upside.

But this prediction could be seen as conservative as many people believe Tesla could achieve over 1 million deliveries in 2021.

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