Bank Of America Says Tesla's Delivery Figure Is Not 'That Impressive'

In a report published Friday, Bank of America analyst John Lovall II commented that

's announcement that it delivered 10,030 vehicles in the first quarter is a "positive surprise" but nevertheless "not that impressive." According to Lovall, Tesla's first quarter delivery figure represents a 2 percent sequential growth from the 9,834 vehicles it delivered in the fourth quarter. The analyst said that Tesla stated that 1,400 units that were scheduled for delivery in late calendar 2014 slipped into the first quarter - implying a 23 percent quarter-over-quarter decline in deliveries (adjusted fourth quarter deliveries of 11,234 versus first quarter deliveries of 8,630). Lovall noted that 10,030 deliveries represents a production run-rate below the company's installed capacity of about 1,300 vehicles per week. The analyst also pointed out that Tesla has been offering "significant" discounts on showroom models and "lightly-used" vehicles to meet its quarterly delivery guidance. Bottom line, Tesla's deliveries guidance sets the stage for "very weak" first quarter financials and raises "significant doubt" around the company's ability to deliver 55,000 units in 2015. Shares remain Underperform rated with an unchanged $65 price target.