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Tesla 2019 sales hit goals, rise over 50 per cent from previous year

by Ace Damon
Tesla 2019 sales hit goals, rise over 50 per cent from previous year

DETROIT –
Tesla's global deliveries increased by more than 50 percent last year, which means the company exceeded the low end of its sales targets for 2019.

The announcement on Friday raised Tesla shares by more than 4 percent to a record $ 449.37. The stock hit a record last week, anticipating strong sales figures.

The electric car manufacturer delivered a record 112,000 vehicles in the fourth quarter and 367,500 for the full year.

Tesla, based in Palo Alto, California, had previously designed deliveries of between 360,000 and 400,000 units worldwide.

The lower cost Model 3 accounted for 83% of the company's fourth quarter sales, with 92,550. The Model S Sedan and the higher priced Model X SUV made up the rest.

Higher sales should bode well for Tesla's fourth-quarter and full-year earnings next month.

But the company issued a cautionary note on Friday saying that while sales figures are somewhat conservative, they may vary by 0.5% or more when final figures are released. "Vehicle deliveries are only a measure of the company's financial performance and should not be considered an indicator of quarterly financial results, which depend on a number of factors," including cost of sales, foreign currency fluctuations and the mix of leased vehicles sold. . Said Tesla.

In the third quarter, Tesla posted a staggering $ 143 million in profit, raising hopes that the company, which also makes solar panels and battery storage units, may finally be turning the corner for profitability.

Tesla reported mostly losses during its first decade as a publicly traded company and lost $ 1.1 billion during the first half of last year.

Tesla's new factory in Shanghai, China, produced just under 1,000 cars for sale, and deliveries began in the world's largest car market, the company said in a statement. Tesla pioneered the plant less than a year ago and expects to produce over 3,000 vehicles a week there.

Wedbush analyst Daniel Ives, in a note to investors on Friday, wrote that the recent Tesla stock price hike was driven in part by short sellers who hedged their positions as stocks rose. But the increase is also due to underlying fundamental improvements, "such as the company's ability to impress not only talk but walk and walk has been noticed on the streets," he wrote.

Next year will be pivotal for Tesla and CEO Elon Musk as production begins at the Shanghai plant, Ives wrote.

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