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Tesla Nears Model 3 Production Targets, Stock Trades Higher

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Tesla Nears Model 3 Production Targets, Stock Trades Higher
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Tesla Inc (NASDAQ: TSLA) boasted its most productive quarter in history Tuesday with a 40-percent sequential increase in production to 34,494 total vehicles.

What You Need To Know

Model S and X production rose from 22,137 to 24,728, while Model 3s came in at 9,766 — far exceeding KeyBanc’s estimate of 8,500.

Tesla closed the quarter producing 2,020 Model 3s per week, ultimately doubling last quarter’s production rate and surpassing Loup Ventures’ 1,500-unit and Deutsche Bank’s 1,100 projections.

“This is the fastest growth of any automotive company in the modern era,” the press release read. “If this rate of growth continues, it will exceed even that of Ford and the Model T.”

Management had targeted a weekly Model 3 production rate of 2,500 by the end of the quarter and continues to project a three-month production goal of 5,000 vehicles per week.

Deliveries

Model S deliveries fell from about 15,200 to 11,730; Model X deliveries fell from about 13,120 to 10,070; and Model 3 deliveries increased from 1,542 to 8,180.

As anticipated, the figures exceeded Baird Equity’s decreased forecasts of 10,000, 10,000 and 8,000, respectively.

Tesla also reported an “all-time Q1 record” for Model S and X orders and “stable” net Model 3 reservations. It justified cancellations of the latter with dissatisfaction in delays.

Guidance

Management said it is on track to achieve 2018 Model S and Model X delivery guidance and will not require an equity or debt raise this year other than standard credit lines. The stock was trading up about 3.3 percent at $260.78 shortly after Tuesday's opening bell.

Related Links:

This Bull Thinks Tesla's Still Charging, Expects Further Slowdown In Model 3 Rollouts

Tesla 'Clarifies' Elon Musk's Q4 Conference Call Statement On Production Rates

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