Tesla delivers quarterly record of 25000 vehicles in first quarter

by Frankie Norman April 4, 2017, 1:32

Tesla Motors Inc announced Sunday that it delivered just over 25,000 vehicles in the first-quarter, of which about 13,450 were Model S and about 11,550 were Model X.

Monday's gain has the electric vehicle marker's market cap up to $47.77 billion, overtaking Ford's ($44.70 billion) for the first time.

Elon Musk's Tesla has accelerated past expectations to deliver just over 25,000 cars in the first three months of the year, an increase of 69 per cent on the same time last year. Moving strongly into the year of the Model 3, Elon Musk and his vehicle company managed to deliver 25,000 Tesla during the Q1 2017. That topped the average forecast of 24 200 from three analysts and should bolster confidence in Tesla's target of delivering as many as 50 000 cars in this year's first half.

Last year, the company lost a lot in the fourth quarter and according to analysts, they could lose in this first quarter as well.

Recently, a Chinese technology company that is behind WeChat, Tencent, purchased a 5% stake in Tesla which is worth about $2.2 billion.

Tesla manufactures its cars in Fremont, near San Francisco, which is believed to be the world's most high-tech auto factory.

Contrary to its usual practice, Tesla did not project full-year deliveries, likely reflecting the uncertainty over the pace of Model 3 rollout in the second half of the year. Forbes had recently reported that a large portion of the firm's bond issued to finance the Model 3 production, when considering the underwriter fees and hedging costs, could face its interest rate ballooned from 2.375% to almost 7%.

The midsize Model 3 sedan is due to go on sale later this year in the United States and Tesla hopes it will end up being their biggest seller.

With a starting price of $35,000, Tesla's Model 3 is expected to be the company's next key growth driver.

Tesla's total production rose to 25,418 vehicles in the first quarter - also a new record. It's only going to get better for Tesla as well, assuming that it can make good on its promises of Model 3 deliveries, Bloomberg reports.

Musk reported that the production of the Model 3 should begin at the start of July this year.

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