Tesla share price up 5% after record 95,200 car deliveries
The electric car company's stock is rising after beating car delivery records in Q2.
Tesla share price increased after surpassing delivery and production estimates. The electric car company produced 87,048 cars and delivered a record 95,200 vehicles in Q2.
Tesla’s strong delivery numbers calm fears about demand
Tesla beat financial experts’ expectations of 91,000 deliveries by delivering 95,200 vehicles in Q2. The figure is a 51% surge from the weak Q1 total of 63,000. Chief executive officer (CEO), Elon Musk, vowed to set a record for deliveries in a troubled year in which the corporation reported Q1 losses of $702 million. The company also had trouble meeting demands of shipping its Model 3 sedan overseas.
Tesla touted its delivery improvement in a statement. The corporation said that it streamlined its international shipping structure to meet demand and boost vehicle sales.
‘We made significant progress streamlining our global logistics and delivery operations at higher volumes, enabling cost efficiencies and improvements to our working capital position,’ said Tesla.
Tesla also expressed optimism that the corporation would continue to meet car delivery expectations in Q3.
‘We believe we are well positioned to continue growing total production and deliveries in Q3,’ said Tesla.
What do financial experts say about Tesla’s record delivery numbers?
Financial analyst, Garrett Nelson, says that Tesla’s robust delivery numbers were an outlier and customers likely hurried to purchase Tesla vehicles before a US $3,750 electric car tax credit was cut in half in July.
‘We think Q2 vehicle sales were artificially boosted by the timing of customer purchases ahead of the 50% step-down in the federal EV [electric vehicle] tax credit from $3,750 to $1,875 on July 1,’ said Nelson.
Irwin Roth Capital analyst, Craig Irwin, has a different view and believes that the impressive vehicle delivery numbers show that Tesla will continue to set car delivery records in Q3.
‘We [Irwin Roth Capital] are increasingly comfortable that they should reflect an even better [delivery total] in the third quarter, and probably their first hundred thousand in a quarter,’ said Irwin.
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