Tesla has released its fourth-quarter delivery results. One of the most important pieces of information being revealed is that the firm made 112,000 deliveries in the last three months of 2019. According to CNBC, Wall Street had expected Tesla to deliver 106,000 vehicles during the quarter; as a response to this over-performance, stocks are currently up more than 3%.
Of the 112,000 deliveries, Model S and Model X vehicles accounted for 19,450 deliveries while the Model 3 accounted for 92,550. On the production side of things, a total of 104,891 vehicles were produced; 17,933 were Model S and Model X vehicles while 86,958 were Model 3 cars. With these figures factored in, 367,500 vehicles in all were delivered to customers, representing a 50% increase over the previous year.
Next week, Tesla is due to start deliveries for its customers in China having already delivered 15 vehicles to some employees in the country. This week the firm decided to slash the starting price of the Model 3 for customers in the country too, which could spur on sales in the coming weeks and months. The Gigafactory 3, which is based in Shanghai, currently produces 1,000 vehicles per week but it’s looking to ramp this up to 3,000 vehicles by the end of the year.
Commenting on the expansion of production, Tesla said the following in its report:
“We continue to focus on expanding production in both the US as well as our newly launched facility in Shanghai. Despite breaking ground at Gigafactory Shanghai less than 12 months ago, we have already produced just under 1,000 customer salable cars and have begun deliveries. We have also demonstrated production run-rate capability of greater than 3,000 units per week, excluding local battery pack production which began in late December.”
Tesla says it will release net income and cash flow results along with the rest of its financial performance when it announces its Q4 earnings. It told investors to wait until the full earnings are published as deliveries alone are not a reliable indicator of quarterly financial results. In terms of the delivery count itself, Tesla believes its figures are slightly conservative because it only counts a car as delivered when it's transferred to the customer and all paperwork is correct.
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