This can be a pivotal year for the Elon Musk-led company as the iconic American automaker made headlines as it reportedly delivered over 25,000 vehicles in the first quarter of 2017, a new record for the electric car maker. This report from Tesla is surprising, considering that the firm has previously encountered a series of production delays and missed deliver targets.
Analysts had estimated that its deliveries for the quarter will be about 23,000 to 24,500, but Tesla proved them wrong. The powerhouse company marked a quarterly record with a 69% increase compared to last year's first quarter deliveries figure which indicates that business is booming for the folks in Tesla. The Model S leads the way for its deliveries as 13,450 S units were delivered while Tesla Model X is trailing behind by a narrow margin with 11,500 deliveries made. Around 4,650 automobiles were still in the process of being delivered, thus they will be counted as second quarter deliveries, Tesla remarked.
It is an incredible feat for Tesla to be able to do all these, especially as the Tesla Fremont plant was set offline a lot in the last few months. Tesla said that the numerous times that the plant’s operations were interrupted were necessary amid company plans to spearhead the production of the initial batch of the new Model 3s. Tesla's CEO Elon Musk raised more than $1.2 billion in a stock and debt sale the previous month to assist in the fund costs for the Model 3.
The head honcho also got a confidence vote the previous week as Chinese Tech Heavyweight Tencent Holdings Ltd. has safely secured 5% asset from Tesla that amounts to around $1.8 billion. Tesla is racing against time to be able to obtain heaps of money for them to produce the new electric sedans. Tencent's nick of time investment may just be the start of Tesla and Tencent's promising partnership.
The electric car manufacturer has over $2 billion worth of debt due in 2018 but it doesn't seem to affect Tesla's performance as its stock price has reached 26% in 2017, and thus reaching a market cap of around $45.5 billion. Now Tesla is deemed the second most profitable U.S. auto company with Ford General Motors trailing behind.
The Palo Alto based electric car maker is expanding its production process as it prepares to unveil the wallet-friendly Model 3 sedan to the public eye. The Model 3s will bear the price tag of around $35,000 each -- a significantly less expensive option compared to the previous models in a move to achieve a larger market share. Production of the Model 3 is anticipated to start around July of this year with the first deliveries to be made around the last quarter. Tesla is also targeting the mass production of 500,000 vehicles per year by the end of next year.