Date
22 October 2019
Tesla's robust deliveries could help jumpstart investor sentiment on the stock, which, before Tuesday's spike, was down about a third from the beginning of the year. Photo: AFP
Tesla's robust deliveries could help jumpstart investor sentiment on the stock, which, before Tuesday's spike, was down about a third from the beginning of the year. Photo: AFP

Tesla delivers record number of electric cars in 2nd quarter

Tesla Inc. set a record for quarterly vehicle deliveries in a triumphant response to months of questions about demand for its luxury electric cars, sending shares up 7 percent in after-hours trading, Reuters reports.

Brushing aside concerns about demand that have dogged the company all year, Tesla said orders during the second quarter exceeded deliveries, despite buyers getting a smaller tax credit.

“We believe we are well-positioned to continue growing total production and deliveries in [the third quarter],” the company said in a statement.

Tesla delivered 77,550 Model 3s in the quarter, the company’s latest sedan and linchpin of the company’s growth strategy. That compared with analysts’ average estimate of 73,144, according to IBES data from Refinitiv.

Deliveries of all models rose 51 percent from the first quarter to 95,200 vehicles, including 17,650 Model S and Model X units. Analysts on average were expecting total deliveries of 89,084.

The delivery numbers included 10,600 vehicles that had been in transit at the end of the first quarter.

Overall, total production rose 13 percent to 87,048 vehicles compared with the first quarter. The company churned out 72,531 Model 3s in the second quarter, up from a total of 62,950 Model 3s in the preceding quarter.

Tesla said that going forward, it would no longer disclose how many vehicles were in transit at the end of each quarter due to production changes that made the number less relevant. At the end of the second quarter, over 7,400 vehicles were in transit.

Chief executive Elon Musk has repeatedly said Tesla could deliver a record number of cars in the second quarter, beating the 90,700 it sent to customers in the final quarter of last year.

Tesla did not comment on profit – which is still elusive – but the robust deliveries could help jumpstart investor sentiment on Tesla, which has been challenged in recent months. Before Tuesday’s after-hours spike, Tesla shares were down about a third from the beginning of the year.

Tuesday’s numbers helped take the sting off a difficult first quarter, in which deliveries plunged and the company lost US$702 million.

The company has pledged to deliver 360,000 to 400,000 vehicles in 2019, a goal many analysts predict will be difficult to meet.

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