Tesla Inc (NASDAQ:TSLA) Stock To Be Watched After Deliveries Exceeded Estimates Surprisingly

Tesla Inc (NASDAQ:TSLA) Stock To Be Watched After Deliveries Exceeded Estimates Surprisingly

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Tesla Inc (NASDAQ:TSLA) has managed to deliver a little over 25,000 vehicle in the first quarter. This came on the back of the company struggling to meet its deliveries in the last year. The electric vehicle maker has failed to make promised deliveries in the past. Therefore, the current news would be viewed as a positive one for the stock to move forward.

Tesla indicated that about 13,450 vehicles were Model S and about 11,550 vehicles were Model X and claimed to be the record one for quarterly deliveries. Aside from these, approximately 4,650 vehicles were in transit, which would be accounted as deliveries in the second quarter. In all, the company produced 25,418 vehicles. The latest quarterly deliveries represented a 69 percent jump on a year-over-year basis. Analysts predicted the company to deliver vehicles between 23,000 and 24,000 in the March quarter.  The deliveries could mean that the company is on track to achieve its targeted level of 50,000 in the first half of the current year.

Tesla’s statement indicated, “Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct. Final numbers could vary by up to 0.5%.”

In 2016, the company targeted to deliver 80,000 cars while delivering 76,230 vehicles. The electric vehicle maker claimed then that it missed deliveries of 2,750 vehicles in the December quarter because of last minute transport delay. Of course, this was not the first time. For instance, in the second quarter of 2016, the company produced about 18,345 vehicles compared to its targeted production of 20,000 units. Similarly, deliveries accounted for only 14,370 units compared to the target of 17,000.

Tesla’s chairman and CEO, Elon Musk, is known to set a tough target and faces a tough challenge on Model 3, which is meant for mass market. The company has about 400,000 people in the waiting list for the model indicating the kind of challenge. The electric vehicle maker is planning to unveil its Model 3 in the third quarter and achieve production of 500,000 vehicles a year by next year. The final objective is to reach one million units by the end of the decade.

Tesla shares closed 0.14 percent higher on Friday.