• Tesla shares continued their winning streak on Thursday after the company announced second quarter delivery figures that beat analyst estimates.
  • Tesla delivered 90,650 vehicles in the quarter, versus analyst estimates for 83,000.
  • The company’s production levels were down 20% due to COVID-19 halting production at its Fremont factory.
  • Production at its Fremont factory has since been ramped up back to pre-pandemic levels, according to Tesla.
  • Visit Business Insider’s homepage for more stories.

Tesla surged as much as 9% to fresh record highs on Thursday after the company revealed second quarter delivery figures that blew past analyst estimates.

For the quarter, Tesla delivered 90,650 vehicles, well ahead of analyst estimates for 83,000 deliveries in the quarter. The company delivered 10,600 Model S and Model X vehicles, and delivered 80,050 Model 3 and Model Y vehicles.

While Tesla beat delivery estimates, the company took a hit on the production side due to the COVID-19 pandemic. Total production of vehicles was down 20% sequentially in the quarter to 82,272 vehicles.

“While our main factory in Fremont was shut down for much of the quarter, we have successfully ramped production back to prior levels,” Tesla said in a press release.

Read more: Cathie Wood's firm built 3 of the world's best ETFs, which all doubled in value within 3 years. She told us her 3-part process for spotting underappreciated technologies before they explode.

Tesla added that its delivery numbers "should be viewed as slightly conservative" and could vary by up to 0.5% or more due to the company counting a car as delivered only "if it is transferred to the customer and all paperwork is correct."

Tesla's Thursday surge to all-time highs only solidifies its leap past Toyota as the world's most valuable auto manufacturer, which happened for the first time yesterday.

Wedbush analyst Dan Ives said in a note published on Wednesday that China demand for Tesla cars is rebounding.

"The clear standout this quarter is the massive underlying demand coming out of China as we have seen demand surge in China for Model 3's in this key region with Giga 3 firing on all cylinders despite the softness seen earlier in April," said Ives.

Ives added that if Tesla delivered close to 90,000 vehicles, which it did surpass, then it could "put the bottom-line in the area code of breakeven, a jaw dropping feat in a dark macro and COVID backdrop for Musk & Co."

Read More:Stock analysts are having a moment in the sun as the market gets flipped upside down. We spoke to 11 of the top-ranked on Wall Street to get their forecasts and single-stock picks.

If Tesla manages to break even in the second quarter, it would make the company eligible to be included in the S&P 500. If that happened, it would create demand for Tesla shares as passive exchange-traded funds and mutual funds tied to the index would be forced to buy shares of Tesla.

Ives expects Tesla to deliver upward of 450,000 vehicles for the year, and said its bull case now calls for Tesla to rise to $2,000, representing potential upside of 64% from current levels.

Year-to-date, Tesla is up more than 190%. The company's meteoric rise has led investors to search for the next Tesla, directing them into smaller electric-vehicle manufacturers like Nikola Motors and Workhorse, which owns a 10% stake in Lordstown Motors.

Tesla shares hit an all-time high of $1,229 in Thursday morning pre-market trades.