Tesla shrugs off Model 3 demand concerns with record delivery numbers

Jeannie Matthews
July 4, 2019

With 77,500 units delivered, Tesla's Model 3 accounted for the bulk of these numbers.

Moving more metal won't solve all of Tesla's challenges.

"We believe we are well positioned to continue growing total production and deliveries in Q3", the company said in a statement.

Over the past couple of weeks, Tesla chief executive Elon Musk has been feverously touting the possibility of April-June 2019 being its most prolific quarter to date.

Tuesday's numbers helped take the sting off a hard first quarter, in which deliveries plunged and the company lost $702 million. Osha has a $347 price target on Tesla.

China tells Britain to keep its 'colonial' hands off Hong Kong
Protesters have since forced their way into the legislature, with police dispersing the occupation with tear gas. Police estimated that 190,000 people joined the peaceful march, the third major one in as many weeks.

Navy SEAL found not guilty in death of Islamic State fighter
The prosecutor acknowledged that the victim - a 17-year-old Islamic State fighter wounded in an airstrike - is not sympathetic. Gallagher also thanked Fox News, several congressmen, and the president for supporting him throughout the trial process.

Iran playing with fire by breaching nuclear deal limit
The United States came within minutes of launching an attack on Iran after the regime downed an American drone in global airspace. The move comes one year after President Trump pulled the USA out of President Obama's nuclear deal with Iran.

Garrett Nelson of CFRA Research noted that second-quarter deliveries were likely artificially boosted by customers pulling forward their vehicle purchases before the July 1 tax credit cut, warning that could result in a "significant retracement" in deliveries in the third quarter.

"That's the quarter where deliveries plunged - because of that Tesla had a 700 million dollar loss". Ahead of the report, Barclays analyst Brian Johnson, long a Tesla bear, upped his delivery estimates to 85,000 from 75,000, still well under the total reported by the company on Tuesday. It will have to average more than 100,000 units per quarter in the second half to reach the low end of the range.

In prior quarters, Tesla has diverted employees from all parts of the company to help with deliveries in an all-hands-on-deck effort to meet delivery goals.

Earlier in June, it was revealed that the EV company has not yet met Musk's 2019 Q2 goal. According to the automaker, it produced 87,048 vehicles during Q2 2019 and shipped around 95,200 vehicles during the same quarter. Investors are concerned the cheaper Model 3 is cannibalizing demand for the higher-margin Model S and X and dragging on profitability. In the first quarter it delivered a disappointing 63,000 cars as the company faced logistical problems transporting vehicles to customers outside the USA, and the company's share price is now 26pc below where it started the year. General Motors Co. sold just 3,965 of its all-electric Chevrolet Bolt in the second quarter, while Volkswagen AG's Audi delivered just 1,835 battery-powered E-Tron SUVs.

Other reports by

Discuss This Article