In recent news release, car tech company Tesla Inc. announced first quarter 2017 production and deliveries beat. After quarter after quarter of disappointing production and delivery rate, Tesla was able to recover from continuous miss and now posts new quarterly record for production and delivery of their cars.
Tesla reported a total of 25,418 vehicles during the first quarter, with an approximate 13,450 of Model S vehicles and approx 11,550 for the Model X. With the new record delivery, Tesla said that this represented a 69% increase from last year’s first quarter data.
In addition to the reported first quarter deliveries, Tesla also stated that around 4,650 vehicles are on the way to customers by the end of the quarter, which will be included in the second quarter data this year.
The latest quarterly report was an improvement for the car company following its previous fourth quarter delivery report that fell 9.4% due to short-term production problems encountered during the transition from new autopilot hardware. According to Tesla, production problems first surfaced around the end of October until the entirety of December. The shirt of hardware used resulted in delayed productions and lower delivery rate.
With the better-than-expected volume of vehicles produced and delivered, the markets now turn to the upcoming latest Tesla car, the Model 3. Analysts now become more optimistic towards the perceived growth of the new and cheap model soon to launch in the auto market at a price of $35,000.
Meanwhile, Tesla still stated production and delivery rate are not the sole basis for the company’s overall performance, saying that “Tesla vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly released vehicles.”
Still, Tesla previously mentioned their production target to reach at least 500,000 cars by 2018.
Tesla stock (NASDAQ: TSLA) closed higher on Friday session by 0.14% to $278.30 per share. On Monday pre-market trading, the news of upbeat delivery report from Tesla helped its stock surge as high as 3.53% to $288.13.
TSLA stock has previously lost its upward momentum beginning the third week of February; however, the stock was able to rally during the last week of March and shows signs of a continuous upward trend.
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