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| Tesla Says Deliveries in Quarter Set a Record | Tesla Says Deliveries in Quarter Set a Record |
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| Tesla delivered a record number of vehicles in the most recent quarter, the company said Tuesday. | Tesla delivered a record number of vehicles in the most recent quarter, the company said Tuesday. |
| The electric-car maker said it delivered 95,200 autos, bettering the mark it had set in last year’s final quarter. | The electric-car maker said it delivered 95,200 autos, bettering the mark it had set in last year’s final quarter. |
| Tesla’s chief executive, Elon Musk, said in an email to employees last week that the company would deliver 90,000 to 100,000 cars in the second quarter. | Tesla’s chief executive, Elon Musk, said in an email to employees last week that the company would deliver 90,000 to 100,000 cars in the second quarter. |
| The sales figures were reported after the market closed, and Tesla stock rose 7 percent in extended trading. The company’s shares had lost about 35 percent of their value since closing above $347 on Jan. 11. | The sales figures were reported after the market closed, and Tesla stock rose 7 percent in extended trading. The company’s shares had lost about 35 percent of their value since closing above $347 on Jan. 11. |
| Tesla benefited from a full quarter of selling the Model 3, its most affordable car, in Europe and China. Deliveries to those markets began about halfway through the first quarter. | |
| It delivered 77,550 Model 3s, up more than 50 percent from the first quarter. Combined sales of the more expensive and profitable Model S full-sized sedan and the Model X sport-utility vehicle also improved to 17,650 vehicles, from 12,100 in the first quarter. But the total was well below the 27,550 delivered in the fourth quarter. | |
| Tesla said 7,400 cars were in transit to customers at the end of the quarter, down from 10,600 at the end of the first quarter. | |
| The company produced 87,048 vehicles in the second quarter, an increase of 13 percent from the first three months of the year. It made 72,531 Model 3s and 14,517 Model S and X vehicles. | |
| In a statement, Tesla said new orders exceeded deliveries in the second quarter, adding that the company was “well positioned” to increase production and deliveries in the third quarter. | |
| Yet even with the solid showing, Tesla may be hard-pressed to reach its goal of selling 360,000 to 400,000 cars this year. That is because the company has delivered just over 158,000 cars in the first six months of the year. | |
| Perhaps more worrying is that Tesla cut prices several times to stimulate sales, moves likely to hurt its bottom line. | Perhaps more worrying is that Tesla cut prices several times to stimulate sales, moves likely to hurt its bottom line. |
| “When you cut prices to hit sales targets, you don’t show that you are on the path to sustained profits,” said Erik Gordon, a business professor at the University of Michigan. “You could be on the path to long-term losses.” | “When you cut prices to hit sales targets, you don’t show that you are on the path to sustained profits,” said Erik Gordon, a business professor at the University of Michigan. “You could be on the path to long-term losses.” |
| Keeping sales on the rise may be a challenge in the second half of the year. As of July 1, the federal tax credit available to Tesla’s customers fell by half, to $1,875, effectively raising the cost of its cars. | Keeping sales on the rise may be a challenge in the second half of the year. As of July 1, the federal tax credit available to Tesla’s customers fell by half, to $1,875, effectively raising the cost of its cars. |
| The decline in first-quarter deliveries, from 90,700 in the final quarter of 2018, came after the credit was reduced to $3,750 from $7,500. | The decline in first-quarter deliveries, from 90,700 in the final quarter of 2018, came after the credit was reduced to $3,750 from $7,500. |
| “Tesla watchers and investors should think less about numbers for the next few quarters,” Mr. Gordon said, “and more about how the company will compete when established car companies with dealer networks, global manufacturing and ample capital invade the market.” | “Tesla watchers and investors should think less about numbers for the next few quarters,” Mr. Gordon said, “and more about how the company will compete when established car companies with dealer networks, global manufacturing and ample capital invade the market.” |
| Tesla is expected to report its second-quarter earnings later this month. | Tesla is expected to report its second-quarter earnings later this month. |