Tesla announced record-breaking numbers Tuesday on its production and deliveries in a press release, which was initially thought to be much lower than critics has expected. The newly announced second-quarter report also picks up after its disappointing first-quarter numbers.
Officially, Tesla’s production and delivery numbers totaled to a record-setting 87,048 electric cars produced and 95,200 delivered. There were 14,417 high-end Model X and Model S produced and 17,650 delivered. Meanwhile, the cheaper Model 3 impressively produced 72,531 and 77,500 delivered.
These number easily met the company’s second-quarter goals and beat last quarter’s 63,000 cars delivered with a 51.1% increase from its admittedly weak first three months of this year, which was also Tesla’s biggest drop in sales. It also surpassed its year-ago quarter, which only delivered 40,740 cars. Notably, the company was still struggling with production and deliveries.
Furthermore, the latest figures of 92,500 sets a new record beating the fourth-quarter of 2018 delivers of 90,700 cars Tesla sold in the last three months of that year.
The electric carmaker’s second-quarter figures also “blew away” analysts’ estimates of 91,000, according to data compiled by FactSet. Deliveries for the company’s biggest seller, Model 3, were only expected at 74,100 while combined shipments for the Model S sedans and Model X SUVs were only estimated at 16,600.
There were an additional 7,400 in transit at the end of the second-quarter even, but Tesla would rather include them in their third-quarter report. Tesla’s orders aren’t fully reflected in its delivery numbers until a buyer takes possession of the new car.
“Customer vehicles in transit at the end of the quarter were over 7,400. Due to the order-to-VIN matching process, we described in our Q1 2019 Shareholder Letter, which we extended to Model S and Model X in Q2 to improve process efficiency, this metric has become less relevant. As a result, we do not plan to disclose the customer vehicles in transit metric going forward.”
Due to particularly unique reasons, Tesla deliveries in the first-quarter dropped and has caused a cash crunch for the company’s share price. Tesla shares have lost more than a quarter of their value since the start of the year. In April, the company posted a first-quarter loss of $702 million.
Notably, Tesla faced a lot of issues during the first three months of 2019. The carmaker was plagued by challenges transporting cars from its factory in Fremont, California, across the world as well as questions about waning customer demand.
Also, the company’s decision to release the cheaper version of its electric cars, the Model 3, faced criticism and analysts told that it was a wrong decision from a strategic position since the company was making more from the pricing of its higher-end models.
Fortunately, the Model 3 turned out to be a prosperous gamble which accounted for Tesla’s impressive number today. In March, Elon Musk, the company founder, said that “given that [a lot happening in Q1], and we are taking a lot of one time charges, there are a lot of challenges getting cars to China and Europe, we do not expect to be profitable. We do think that profitability in Q2 is likely.”
Furthermore, the Securities and Exchange Commission was also on Musk’s heels in February as he tweeted about producing an estimated 500,000 cars by the end of the year when analyst estimates only predicted 400,000 — leading to an SEC filing with Musk breaching a previous settlement.
Today, Tesla is addressing its struggle with production and deliveries as they have “made significant progress streamlining [their] global logistics and delivery operations at higher volumes, enabling cost efficiencies and improvements to our working capital position.”
Looking forward to next quarter’s deliveries, “orders generated during the quarter exceeded our deliveries, thus we are entering Q3 with an increase in our order backlog. We believe we are well positioned to continue growing total production and deliveries in Q3.”
The company is “well positioned to continue growing total production and deliveries” in the coming quarter. Tesla also received more new orders last quarter than the total number of deliveries it recorded. That could indicate that there’s still strong demand for Tesla vehicles.
The company’s stock jumped by about 7% in after-market trading. Tesla also hinted at a strong third-quarter.