Tesla Delivered 97,000 Vehicles In Third Quarter – Misses Mark And Stock Slides

Oct 2
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Tesla announced it delivered around 97,000 vehicles in Q3 2019 which actually edged out their previous record of around 95,000 vehicles from the second quarter.

Wall Street is a fickle beast and despite setting an all-time high record of 96,155 vehicles produced and around 97,000 vehicles sold/delivered, shares have plunged in after-hours trading by as much as 5%. Prices are currently hovering down by about 4% from the day's close.

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Tesla Model 3 leading the charge

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When we look at the numbers we can say that Tesla's (NASDAQ:TSLA) Model 3 has truly transformed the company from an almost niche-level producer of EVs to a true mass-market manufacturer. Out the 97,000 vehicles delivered, 79,600 were Model 3's with the remaining 17,400 comprised of Model S and Model X.

82% of its record-breaking delieveries is certainly nothing to sneeze at and it continues to drive home how important the more affordable Model 3 is to the company.

If we take a step back and weigh these numbers, Tesla is certainly on-track to delivery on its promise to ship 360,000 vehicles in 2019. Last week Musk emailed employees saying that demand indicators were showing a possible 110,000 deliveries for Q4, which would put the firm up near 370,000 for the year.

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Despite this overall good news, investors bought into the "100,000" hype as many analysts had been edging up quarterly delivery estimates for the last few months. Despite falling a few thousand short Tesla is still continuing to show very solid growth. Elon commented that it was supply, and not demand that hindered Q3 deliveries - evidenced by a growing backlog of orders for Q4.

In fact, Teslarati reports that Tesla will begin producing Model 3's at its brand new Gigafactory 3 in China sometime this month. Shipments of the Model 3 have already ceased to the Chinese mainland. Once that massive factory comes online Tesla should see a very healthy increase in its global deliveries in the coming quarters.

Tesla's press release here:

Tesla Q3 2019 Vehicle Production & Deliveries

PALO ALTO, Calif., Oct. 02, 2019 (GLOBE NEWSWIRE) -- In the third quarter, we achieved record production of 96,155 vehicles and record deliveries of approximately 97,000 vehicles.

Production Deliveries Subject to lease accounting
Model S/X 16,318 17,400 15 %
Model 3 79,837 79,600 8 %
Total 96,155 97,000

In addition, we achieved record net orders in Q3 and are entering Q4 with an increase in our order backlog. As was also the case in Q2, nearly all of our Model 3 orders were received from customers who did not previously hold a reservation, solidifying the transition to generating strong organic demand. We are continuing to focus on increasing production to meet that demand.

Our net income and cash flow results will be announced along with the rest of our financial performance when we announce Q3 earnings. Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct. Final numbers could vary by up to 0.5% or more. Tesla vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles.

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