Tesla, Inc. (TSLA - Free Report) registered record production and deliveries of 104,891 and 112,000 vehicles, respectively, in the fourth quarter of 2019.
Notably, the company’s Model S/X and Model 3 reported record production and deliveries in the fourth quarter. The Model S/X division recorded production and delivery volume of 17,933 and 19,450 vehicles, respectively. The Model 3 division registered production of 86,958 vehicles, while 92,550 vehicles were delivered.
In 2019, Tesla delivered 367,500 vehicles, reflecting an increase of 50%, year over year, and nearly in line with the company’s full-year guidance of 360,000 vehicles.
With China being the biggest electric vehicle (EV) market, Tesla’s ambitious plans to expand production in the country bode well. Per Tesla, the company has already managed to manufacture almost 1,000 saleable cars at its Shanghai factory, despite breaking ground less than 12 months ago. With more battery production, it will be capable of producing more than 3,000 units a week in the upcoming period.
Tesla is also aimed at opening Gigafactories in Europe and a few other regions in order to boost output. It also plans to soon announce the location of its European Gigafactory, wherein it intends to start manufacturing electric vehicles in 2021.
Moreover, the company’s focus on expansion of its product portfolio, introduction of car-sharing services and development of self-driving capability is commendable. The production of Model Y is slated to begin in 2020. The company recently stated that it is ahead of schedule on its long-awaited Model Y crossover, which will likely be rolled out this summer. At the same time, Tesla is planning to make a limited run of the Tesla Semi truck this year.
Zacks Rank & Other Stocks to Consider
Tesla currently sports a Zacks Rank #2 (Buy). The stock has outperformed the industry it belongs to over the past year. Its shares have appreciated 32.2% compared with the industry’s rise of 25.3%.
Other top-ranked stocks in the Auto-Tires-Trucks sector include Douglas Dynamics, Inc. (PLOW - Free Report) , Visteon Corporation (VC - Free Report) and SPX Corporation (SPXC - Free Report) . While Douglas Dynamics flaunts a Zacks Rank #1 (Strong Buy), Visteon and SPX carry a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Douglas Dynamics has an estimated earnings growth rate of 10.42% for 2020. The company’s shares have surged 64.9% in a year’s time.
Visteon has a projected earnings growth rate of 69.76% for the ongoing year. Its shares have gained 41.9% over the past year.
SPX has an expected earnings growth rate of 8.09% for the current year. The stock has appreciated 86.4% in the past year.
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