Tesla (TSLA) reporting record Q1 deliveries on Sunday of 422,875 vehicles globally, an increase of 36% from last year. It does fall short of the 50% annual growth target CEO Elon Musk set, but the latest figures are a positive indicator following the company's recent EV price cuts.

Dan Ives, Wedbush Managing Director and Senior Equity Analyst, joins Yahoo Finance's Seana Smith and Dave Briggs to break down why Tesla's stock was down despite the positive news and to discuss the possibility of future price cuts.

Key video moments

00:12 On falling short of 50% annual growth

00:32 On the bull and bear case

01:09 On Tesla being a tech market disrupter

02:08 On further price cuts

Video Transcript

- What about the fact, though, that they did fall short of the pace that's needed to attain that goal that Musk laid out in terms of 50% annual growth. Is that still attainable?

DAN IVES: I think 50% was really something they took off the table on the last earnings. Now, granted, the longer term 50% goal, but really the number that the street investors are focused on is $1.8 million. And I think if you look at that, they are on or actually ahead of that pace. And that's all right now. Of course, there's been a lot of bulls and bears in terms of that tug of war. Despite the stock doing what it's doing, I think the bulls ultimately won this battle.

- But Dan, ultimately it comes down to this price action. I mean, we're talking about a market cap almost three times Toyota. $602 billion for Tesla, $231 billion for Toyota. Is that even near justified with the demand we're seeing for Tesla?

DAN IVES: Look, and that's always the debate. If you go back to test a Mini, they hated the $5 billion. They despised it a trillion and pulled the hair out at $600 billion. I just have always viewed it as a disruptive technology player and not a traditional auto player. That's why I view apples to oranges when you compare them just to the likes of a Toyota or others.