With its latest business quarter ending Monday, Tesla has its sights set on reporting deliveries of at least 100,000 vehicles for the three months of July, August and September.
Such a figure would be a quarterly record for Tesla’s vehicle deliveries, the term Tesla uses for car sales. But it might come down to the wire before the electric carmaker knows it if will reach the 100,000 milestone.
Tesla was said to be working overtime in order to get care out of inventory and delivered to buyers by the end of business Monday. According to Electrek, a news site that which closely covers the electric vehicle industry, Tesla Chief Executive Elon Musk sent an email to company employees on Friday saying the company had “a shot” at surpassing 100,000 vehicle deliveries in its third quarter.
But, Electrek also reported Monday that according to “sources”, Tesla has around 3,000 vehicles in its inventory around North America, but that not all those cars are at Tesla vehicle centers, and that the company might be able to deliver only between 500 and 1,000 cars to new owners by the end of Monday.
Tesla typically releases its vehicle delivery figures three business days after a quarter’s conclusion, a company spokesperson told this news organization Monday.
Tesla delivery results have been on the rise throughout 2019, with the company delivering 63,000 cars in the first quarter of the year, and another 95,200 vehicle in the second quarter. The company has said it expects to deliver between 360,000 and 400,000 cars this year.
“If they deliver 100,000 cars, it would be a win for Tesla,” said Gene Munster, managing director of research firm Loup Ventures. “That puts them on track for (delivery) growth of just over 40% in 2019, which would be impressive.”
But, with every quarter, Tesla faces the need to prove it can continue growing the number of its vehicle deliveries. The company’s biggest-selling car, the Model 3, is also its lowest-priced vehicle, meaning that the company needs to continue to increase delivery volume in order to grow overall revenue and reach consistent profitability. Tesla also has big plans for its upcoming Model Y crossover SUV, which the company has said it will begin production on later in 2020.
Investors have been skeptical on Tesla over the last several months due to erratic earnings results and concerns about whether the company can meet production goals set by Musk. Since the start of the year, Tesla’s shares have fallen more than 28%, to $239.28 on Monday.
Investors “don’t believe Tesla’s growth is sustainable, “Munster said. “It will take another year of favorable results to slowly bring down the wall of doubt that has historically circles the Tesla story. But, over time, it will come down.”
