Tesla Stocks Jumps By 7 Percent After Record Number Of Deliveries
Tesla's stock prices surged by as much as 7 percent this week after the company announced that it had set a new record for new deliveries for the quarter. The company mentioned on Tuesday that it was able to deliver around 95,200 new cars to customers in its second quarter.
Elon Musk's electric vehicle firm managed to beat its own goals for the quarter. The figure also overtook the company's previous deliveries, which stood at 63,000 cars delivered in the first three months of 2019.
This was a significant boost in confidence for the company, which previously struggled to meet demands due to production and logistics issues. In the fourth quarter of 2018, the company was only able to deliver around 40,740 cars to customers.
Tesla was mostly struggling in ramping up the production of its long-promised mass-market electric vehicle, the Tesla Model 3. However, that doesn't seem to be an issue this time around as out of the 95,200 cars that were delivered for the quarter, roughly 77,550 of them were Model 3s.
The increased number of delivered vehicles does directly translate to sales for the company, as customers do not generally pay full price until they receive their order. Following news of the company's record number of deliveries, Tesla's stock prices had jumped by as much as 7 percent.
The latest sales figures likely provided investors with an added boost in confidence for Tesla, which had previously reported a significant drop in sales last year. In 2018, the company was only able to sell a total of 90,700 cars.
Tesla mostly blamed the drop in its sales last year to logistical issues in its attempt to bring the Model 3 into overseas markets. Last year's sales were apparently also affected by the drop in tax credits for Tesla buyers. The company's numbers are expected to significantly increase this year given its performance so far.
Telsa stated this week that it has already made a lot of progress in streamlining its global shipping and delivery operations. The enhancement of its global delivery and shipping has apparently saved the company a lot of cash and enhanced its sales in foreign markets.
According to Tesla, the logistics enhancement places it in a very good position to continue its total production and sales growth for the new quarter.
The firm also stated that it had already received a lot of new orders, which should significantly increase its deliveries for the next period. The orders have also been taken as a clear sign by the company that there is still a strong demand for its product domestically and overseas.