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Tesla (TSLA) Reveals Quarterly Vehicle Sales & Delivery
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Tesla Inc. (TSLA - Free Report) has reported total sale of 22,000 Model S and Model X sport-utility vehicles in the second quarter, reflecting an increase of 53% from the year-ago period. However, the figure has missed the average quarterly target of 23,655 deliveries. On the other hand, the company has met its target of 47,000-50,000 in the first half of the year with 47,100 vehicle deliveries.
Tesla’s sales were curbed by the production deficit of battery packs, which until late June had led to a production shortfall of approximately 40% below demand. Once this production crisis was resolved, the June deliveries grew strong enough to ramp up growth. This development was ranked as one of the best in the company’s history.
The company expects to supply more Model S and Model X in the second half of the year, if global economic conditions do not deteriorate much.
Tesla’s CEO Elon Musk has also indicated a tighter timetable for the production of Model 3, its newest and less expensive sedan. The model will be priced at $35,000 which is far less than its two existing editions and is expected to play a major role in the total sales. It plans to hit a rate of 20,000 Model 3 versions a month from this December onward, in line with the previous promise of producing 5,000 vehicles a week by the year-end.
Tesla is aggressively working toward expanding its product portfolio to boost sales. In Aug 2016, it had launched new versions of Model S and Model X with 100 kWh batteries.
Although electric cars occupy a small portion of the global automobile market, Tesla has acquired a substantial market share within this niche segment. Tesla has delivered over 25,000 vehicles in first-quarter 2017, up 69% year over year. The company is witnessing a growing sales curve on the back of a strong performance and an impressive design of its products. The company also to its credit enjoys a remarkable clientele base with bigwig automakers like Daimler as a client for its electric powertrain components.
Price Performance
Tesla has outperformed the Zacks categorized Automotive - Domestic industry in the last six months. The company’s share price has soared 53.9% compared with the industry’s 20.7% gain.
Expected long-term growth rate for Allison Transmission, Cummins and Continental are 11%, 11.7% and 7.8%, respectively.
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Tesla (TSLA) Reveals Quarterly Vehicle Sales & Delivery
Tesla Inc. (TSLA - Free Report) has reported total sale of 22,000 Model S and Model X sport-utility vehicles in the second quarter, reflecting an increase of 53% from the year-ago period. However, the figure has missed the average quarterly target of 23,655 deliveries. On the other hand, the company has met its target of 47,000-50,000 in the first half of the year with 47,100 vehicle deliveries.
Tesla’s sales were curbed by the production deficit of battery packs, which until late June had led to a production shortfall of approximately 40% below demand. Once this production crisis was resolved, the June deliveries grew strong enough to ramp up growth. This development was ranked as one of the best in the company’s history.
The company expects to supply more Model S and Model X in the second half of the year, if global economic conditions do not deteriorate much.
Tesla’s CEO Elon Musk has also indicated a tighter timetable for the production of Model 3, its newest and less expensive sedan. The model will be priced at $35,000 which is far less than its two existing editions and is expected to play a major role in the total sales. It plans to hit a rate of 20,000 Model 3 versions a month from this December onward, in line with the previous promise of producing 5,000 vehicles a week by the year-end.
Tesla is aggressively working toward expanding its product portfolio to boost sales. In Aug 2016, it had launched new versions of Model S and Model X with 100 kWh batteries.
Although electric cars occupy a small portion of the global automobile market, Tesla has acquired a substantial market share within this niche segment. Tesla has delivered over 25,000 vehicles in first-quarter 2017, up 69% year over year. The company is witnessing a growing sales curve on the back of a strong performance and an impressive design of its products. The company also to its credit enjoys a remarkable clientele base with bigwig automakers like Daimler as a client for its electric powertrain components.
Price Performance
Tesla has outperformed the Zacks categorized Automotive - Domestic industry in the last six months. The company’s share price has soared 53.9% compared with the industry’s 20.7% gain.
Zacks Rank & Key Picks
Currently, Tesla carries a Zacks Rank #3 (Hold).
Tesla Inc. Price and Consensus
Tesla Inc. Price and Consensus | Tesla Inc. Quote
Some better-ranked stocks in the auto space are Allison Transmission Holdings Inc. (ALSN - Free Report) , Cummins Ins. (CMI - Free Report) and Continental AG (CTTAY - Free Report) , each sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Expected long-term growth rate for Allison Transmission, Cummins and Continental are 11%, 11.7% and 7.8%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>