Tesla Delivers a Record Number of Electric Vehicles in the Quarter
Electric automaker Tesla just posted its biggest delivery quarter ever. The company reported that it delivered 77,550 Model 3s in the second quarter, easily beating Wall Street expectations amid concerns about dwindling demand for its electric vehicles.
The Tesla Model 3 remains the best selling premium car in the U.S.
Tesla reported deliveries of 95,200 vehicles representing a 51% jump from the first quarter, making it the highest quarter in the company's history. The total included 17,650 Model S and X vehicles. Analysts on average were expecting total deliveries of 89,084, according to Reuters.
Tesla attributed the jump in deliveries to the streamlining of its global logistics and delivery operations at higher volumes, enabling cost efficiencies.
It's a big turnaround for Tesla, as the automaker experienced a difficult first quarter, in which deliveries plunged by 31% and the company lost $702 million. The company said earlier this year it would turn a profit in the second half of 2019.
Tesla CEO Elon Musk has repeatedly said Tesla could deliver a record number of cars in the second quarter, surpassing the 90,700 it sent to customers in the final quarter of last year, which was the highest in its history.
Musk has been busy trying to convince investors that demand remains high for Tesla's electric vehicles and that its vehicles can be delivered quickly to customers around the world. Deliveries of the first Model 3s to customers in Europe began in February for the first time since the mass-market vehicle began rolling off the assembly line in July 2017.
Tesla has said it will deliver 360,000 to 400,000 vehicles in 2019, a goal many analysts predicted will be difficult to meet.
Overall, total production at Tesla's Fremont, California factory rose 13% to 87,048 vehicles compared with the first quarter. The company churned out 72,531 Model 3s in the second quarter, up from a total of 62,950 Model 3s in the preceding quarter.
Although the record deliveries are a boost to the company, Tesla's future growth potential may be impacted as rival automakers introduce their own fully-electric models. Among the newest electric cars are the Hyundai Kona electric, as well as the upcoming Audi e-tron and Mercedes Benz EQC SUVs.
Tesla's delivery numbers sent it stock higher. After the opening bell on Wall Street Wednesday morning, Tesla shares were up around 13% to $237.60.
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