Tesla Sets Quarterly Record, Delivers 25000 EVs So Far In 2017

by Frankie Norman April 14, 2017, 1:23
Tesla Sets Quarterly Record, Delivers 25000 EVs So Far In 2017

More than 25,000 vehicles were delivered in the first three months of this year, a 69 percent increase over the first quarter of 2016. The company also revealed that, during the quarter, the company produced 25,418 vehicles, another record-setting result for Tesla.

The fact that first-quarter deliveries beat estimates, combined with higher potential deliveries in the first half of 2017 vindicates some of the decisions Musk has made. It now has 4,650 cars in transit to customers and they will be counted in the delivery figures for Q2 2017.

For that plan to work, Tesla will need to execute a smooth production ramp-up for the Model 3, something it hasn't been able to pull off with any of its previous product launches.

Tesla has not announced when the Q1 2017 earnings call will take place. While the United States is still the biggest market for the company with sales of $4.2 billion a year ago, the $1.1 billion in sales from China is triple the $318 million from 2015, representing massive growth and a big opportunity for Tesla.

Right now, the main goal for the ones at Tesla is to reach somewhere between 47,000 and 50,000 deliveries in the first half of this year. It is discontinuing a low-end Model S with its 60-kilowatt-hour battery pack on April 17, making the 75-kilowatt-hour Model S its cheapest auto at $74,500 before tax credits or state rebates until the Model 3 arrives. TSLA shares have surged about 30 percent so far this year. The vehicle now accounts for nearly half of the company's deliveries.

Tesla CEO Elon Musk hopes his company's cars will find more buyers in China. Although Tesla has yet to manufacture in high volumes, investors are long on Musk as the company prepares to launch the Model 3, which meant to appeal to a broader audience and propel Tesla into the mainstream.

The Model 3 is due to go on sale in the USA this year priced at $35,000. The electric vehicle maker is planning to unveil its Model 3 in the third quarter and achieve production of 500,000 vehicles a year by next year.

Prominent investors in Tesla shares include asset management firms T Rowe Price and Bailie Gifford.

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