Tesla announced on Friday that produced little more than 145 000 cars and put nearly 140 000, which was better than expected on wall Street. The company is nearing its target of supply of half a million electric vehicles in 2020.
Tesla stock (TSLA) fell 4.5% on Friday (at the time of writing), despite the fact that the company reported another record deliveries of its electric cars during the quarter.
YTD, the shares of Tesla rose 435,65% and for last week increased by 15.57%, also closing with a growth of 4.46% on Thursday.
Today’s decline can be linked to a common negative reaction of the stock market on the news of the detection of coronavirus in the U.S. President Donald trump, which causes uncertainty at the start of the upcoming presidential elections on 3 November.
For the third quarter, Tesla was able to produce 145 036 cars at its plants in Fremont and Shanghai (the company does not split data for plants), up 13 percent from a year earlier. The total number came down the Assembly line of the Model S and Model X was 16 992 and Model 3 with Model Y: 128 044, the company does not specify in more exact figures for each model.
In the second quarter Tesla produced only 82272, however, this decline was due to a temporary cessation of operation of the plant in Fremont because of the pandemic.
With regard to the supply of the 3rd quarter, they increased by 7% to 139 300 cars compared to the previous year and by 54% compared to the previous three-month period. This is higher than the average estimates of analysts, who expected a figure of 137 000 and exceeds the previous record of the company for the supply of 112 000 vehicles.
In its press release, Tesla noted: “Our counting of deliveries should be viewed as somewhat conservative since we believe the car is delivered only if it is transferred to the buyer and all the documents are correct. The final figures may differ by 0.5% or more”.
Shortly before the annual shareholders meeting, Tesla CEO Elon Musk wrote in an email to all staff: “we Have a chance to reach a record quarter for the supply of vehicles, but we will have to put a lot of effort. This is the highest number of vehicles per day, which we had to deliver”.
Analysts say that the increase of production and supply, the company helps its second plant in Shanghai. According to reports, Tesla plans to start exporting some of its cars from China to Europe, although the company has traditionally exported there cars, produced exclusively in the United States.
Earlier this week, Tesla has reduced the price of its popular Model 3, produced at the plant in Shanghai, thanks to the support of government subsidies in the country and the use of cheaper lithium-phosphate batteries (LFP) without the expensive cobalt. Prices have been reduced by 8%, bringing the base price of the Model 3 Standard Plus Range in China is now $36 805, the price of a similar model in USA is $37 990.
Growing demand and more affordable price should benefit the company in the current 4th quarter as the manufacturer of eco-friendly cars will require another record to achieve its goal of supply 500,000 electric vehicles.
Chinese competitors Tesla Nio (NIO) and Auto Li (LI) have also recently reported strong growth in deliveries in the third quarter.
