Tesla Delivers 112,000 vehicles in fourth quarter, Topping Wall Street Estimates

Tesla Delivers 112,000 vehicles in fourth quarter, Topping Wall Street Estimates

/ January 3, 2020 / 862 Views

Tesla delivered 112,000 vehicles globally during the quarter, topping conservative Wall Street estimates of just 106,000 vehicle deliveries

Facing much negativity in recent years, Tesla has been able to overachieve and over deliver for most of the recent few years. The same happened in the Q4 of 2019 where the United States-based carmaker delivered 112,000 vehicles globally during the quarter, topping conservative Wall Street estimates substantially. Last year, Wall Street expected Tesla to deliver 106,000 vehicles to customers during the fourth quarter. This would slide in between the company’s annual delivery goal of between 360,000 and 400,000 vehicles. However, the carmaker managed to deliver 6,000 more vehicles in the same time period.

Furthermore, Tesla delivered approximately 367,500 vehicles last year, an impressive 50% jump from 2018. In addition to that, the company aimed for a 45% to 65% increase from 2018 in vehicle deliveries. That was too surpassed with an impressive 50% increase from the year before. However, there’s much controversy over Tesla’s delivery numbers and it’s no surprise these are a closely watched piece of information in the industry. After all, delivers don’t actually relate to sales, but pose the closest proximation to actual sales figures. The company stated that it counts a car as delivered “if it is transferred to the customer and all paperwork is correct.”

To clarify the above, Tesla manufactured 96,155 vehicles and delivered 97,000 vehicles  in the third quarter. In the fourth quarter, it manufactured 104,891 vehicles and delivered 112,000. That’s where the particular dealership situation (or the lack thereof) comes into play and this is where the different numbers will always be posted when the EV carmaker is viewed against legacy ones overall.

This means that the deliveries are a tell-tale sign of how the company is performing ahead of them releasing the quarterly earnings to the shareholders. While the deliveries are making headlines in a big way, the company is also doing great on Wall Street as well. Right now, the shares of the battery-powered vehicle maker surged more than 4% in the morning, trading to $48 per share, a 49% rise over the last 12 months. While we don’t hold any Tesla stock and we should not be used as an investment advisory, we definitely feel that Tesla’s stock is (right now) probably the best and most highly coveted item for those looking to invest into something long-term. Naturally, all of this can go either way.

Overall, the company stated it delivered 92,550 Model 3 cars and 19,450 Model S and X vehicles during the fourth quarter. The company was expected to deliver 87,900 Model 3, 9,800 Model S and 9,300 Model X vehicles, according to an average of analysts surveyed by FactSet. With several improvements in production capacity coming online (Shanghai Gigafactory for the most part), we envision the carmaker to increase deliveries even further in 2020, giving all of those in line for a Model 3 something to look forward too. Overall, it’s going to be an exciting year for EV fans around the world, that’s for sure.

Source: CNBC

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