Tesla, Inc.’s (TSLA - Free Report) vehicle production has reached a historic level in the second quarter of 2018, making it the most-productive three-month period. During the reported quarter, the company witnessed 55% sequential rise in production, to 53,339 vehicles, with Model 3 production rising almost three times from the prior quarter. The total production number consists of 24,761 units of Model S and X, and 28,578 units of Model 3.
Notably, Tesla achieved its goal to produce 5,000 Model 3 sedans in the last week of second-quarter 2018. In the past week, the company manufactured 5,031 Model 3, and 1,913 Model S and X vehicles.
Further, Tesla anticipates reaching 6,000 units of Model 3 per week by the August end. The company reaffirmed its net income and cash flow guidance for the third, and the fourth quarter to be positive, in spite of higher tariffs and a weaker U.S. currency.
Tesla, Inc. Price and Consensus
Vehicle deliveries totaled 40,740 units in the second quarter of 2018. The total figure consists of 18,440 units of Model 3s, 10,930 units of Model S and 11,370 Model X vehicles, which was in sync with the guidance provided by Tesla in May. When compared with the prior-year quarter, deliveries of both Model S and X were higher. Also, for full-year 2018, the overall target for Model S and Model X deliveries has been kept unchanged at 100,000 units.
Although Tesla has delivered roughly 28,386 Model 3 vehicles to date, the reservation count was still around 420,000 units at the end of the second quarter. However, the company expects the figure to rise, once customers get an opportunity to test-drive the model at their local stores.
In the past three months, Tesla’s stock has moved up 16.7%, outperforming the 4.9% increase of the industry it belongs to.
Zacks Rank & Stocks to Consider
Currently, Tesla has a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Magna International Inc. (MGA - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Visteon Corporation (VC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Magna has an expected long-term growth rate of 8.5%. Shares of the company have risen 24.8% over the past year.
Allison Transmission has an expected long-term growth rate of 10%. Shares of the company have risen 6.2% over the past year.
Visteon has an expected long-term growth rate of 15%. Shares of the company have risen 25.4% over the past year.
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