Tesla’s (TSLA - Free Report) vehicle sales in the U.K. in September and the third quarter were a record high. The major contributor was Model 3, which has become one of the bestselling cars in the market.
In September, the company delivered 3,459 vehicles, which included 2,864 Model 3s. As a result, Tesla’s market share in the U.K. rose to 2.2%.
In the third quarter, the company delivered 6,244 vehicles, which included 5,385 Model 3s. It delivered more vehicles in the third quarter than it did in all of 2018. Last year, it delivered 3,372 vehicles in the U.K.
Tesla’s Model 3 has been one of the bestselling cars in the Netherlands and Norway. In September, it outpaced the sale of internal combustion engine cars in Norway. In Italy, it was the best-selling electric vehicle (EV) in September. Notably, 325 Model 3 units were sold in September, which accounted for 26% of Italy EV sales.
The sale of Tesla’s Model 3 is increasing with each passing month. If it continues, it can help the company achieve its target of 360,000-400,000 deliveries in 2019. Tesla delivered a record 97,000 electric vehicles in the third quarter. However, to achieve the lower end of its guidance, the company needs to deliver at least 104,781 units in the fourth quarter.
Rising Model 3 delivery, which forms a major chunk of the utomaker’s overall deliveries, is aiding top-line growth. While Tesla has been making great strides in the EV market, other auto bigwigs like Ford (F - Free Report) , General Motors (GM - Free Report) and Fiat Chrysler (FCAU - Free Report) haven’t witnessed similar success.
However, the Zacks Rank #3 (Hold) company is bearing the brunt of increasing research & development (R&D), and selling, general &administrative (SG&A) costs, which have been denting margins. Further, the U.S.-Sino trade tensions and weakening yuan remain concerns.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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