Published: Wed, July 03, 2019
Markets | By Otis Pena

Tesla stock pops after setting new production and delivery records

Tesla stock pops after setting new production and delivery records

Elon Musk's Tesla saw its shares spark higher in late trading Tuesday after the electric-car maker set an all-time record for deliveries.

In total, Tesla delivered 95,200 cars, to all of its global markets combined, between April and June.

It was a key quarter for observers, after the company's deliveries lagged in the first quarter as it began exporting its most popular Model 3 and cited delivery snags, particularly in Europe as the reason.

"Orders generated during the quarter exceeded our deliveries, thus we are entering Q3 with an increase in our order backlog", the company said in a statement. The full earnings report, with full financial results, is due on August 7. In the first quarter it delivered a disappointing 63,000 cars as the company faced logistical problems transporting vehicles to customers outside the U.S., and the company's share price is now 26pc below where it started the year. Starting July 1, the credit is cut by half, to $1,875, and in 2020 it will disappear completely.

Before Tuesday's after-hours spike, Tesla shares were down about a third from the beginning of the year.

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"The stock and future of Tesla all reside on the sustainable demand going forward and elusive profitability", Dan Ives, an analyst at Wedbush Securities, wrote in a report.

A line of unsold 2019 Model 3 sedans sits at a Tesla dealership in Littleton, Colo.

With the USA federal tax credit shrinkin for the second half of the year and ending in 2020, Tesla also may have to lean more on overseas markets to buoy sales.

With the best-selling - and more affordable - Model 3 electric sedan now available in both left-hand and right-hand drive markets around the world, including Australia, Tesla says it has taken more orders during the second quarter than it was able to make cars.

Meanwhile, the company is apparently cementing its ability to keep up with demand by working towards securing ample battery supply. At the end of the second quarter, over 7,400 vehicles were in transit. "There is a segment of the population that just wants to buy a Tesla because they like the brand and they won't look at anything else".

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