Date
24 September 2017
Tesla expects the Model 3 to come on stream late next year. The car is priced lower than earlier models of the electric vehicle. Photo: theverge
Tesla expects the Model 3 to come on stream late next year. The car is priced lower than earlier models of the electric vehicle. Photo: theverge

Tesla shipments top analysts’ forecasts

Tesla Motors Inc. shipped 24,500 vehicles in the third quarter, topping analysts’ estimates.

That came after chief executive officer Elon Musk urged employees to boost sales during the period ahead of a plan to raise more capital, Bloonberg reports.

The company delivered about 15,800 Model S sedans and 8,700 Model X sport-utility vehicles, it said in a statement.

The quarter was Tesla’s last chance to show that it can be profitable before it raises money to ramp up production of the new Model 3.

Musk urged employees in an Aug. 29 e-mail to work on “building and delivering every car we possibly can”.

The company has been taking aggressive measures to keep sales of the Model S and Model X strong while it awaits the smaller, less-expensive Model 3, which is not slated to begin volume output until late next year.

The third-quarter deliveries were positive and beat most estimates, said Jeffrey Osborne, an analyst at Cowen & Co., who rates the stock underperform.

“We were looking for 20,500 this quarter with an acceleration in 4Q to get to 50,000 for the second half,” Osborne said by e-mail.

“We believe bullish investors were in the 22,000 to 23,000 range.”

Musk last week urged employees to stick to pricing policies, responding to concerns that Tesla was straying from a long-held policy against discounting its cars.

Tesla on Sunday said its delivery count should be viewed as slightly conservative because it only counts a car if it’s transferred to the customer and all paperwork is correct.

The company expects to deliver 50,000 vehicles in the second half.

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