Tesla’s third-quarter deliveries exceed expectations, which is excellent news for the burgeoning automaker.
Tesla continues to dominate the electric-vehicle narrative, and until the brand’s energy-storage solutions begin to pay off, its EV sales are the only indicator of the company’s success. With the introduction of a new car, the Model X crossover, Tesla had hoped its lineup would allow the automaker to hit its target of delivering 50,000 vehicles this year.
As of right now, there hasn’t been much mention of Tesla’s Model X deliveries. The first six units were unveiled and delivered, but beyond that, the automaker is mum on details.
Tesla could use some good news this month. In October, Consumer Reports pulled its recommendation of the Model S sedan, citing reliability issues that only recently came to light in owner-supplied surveys. Since then, the brand has been hard at work establishing differences between models sold early in the production run and what’s coming out of the factory right now.
What matters right now is whether or not Tesla is capable of delivering vehicles on a level that would keep investors (and any potential buyers) happy.
And it appears that Tesla is meeting those expectations.
The company on Tuesday posted a non-GAAP third-quarter loss of 58 cents per share on $1.24 billion in revenue. On average, analysts polled by Reuters estimated a non-GAAP loss of 54 cents per share on $1.22 billion in revenue. The automaker delivered 11,603 vehicles in the third quarter, as well, including the new Model X.
This exceeded the automaker’s own expectations, but it shows the company still has a long way to go to reach the magic number of 50,000 vehicles delivered in 2014. The company’s outlook, however, is very positive — it believes it will come through on building between 15,000 and 17,000 vehicles for the remainder of this year, with between 17,000 and 19,000 deliveries.
What does this mean for the potential Tesla customer? It’s simple — those on the waiting list for a new Tesla may have less time to wait between ordering and receiving their cars, provided the company meets its promises.
Despite an outlook that nearly doubles Tesla’s current number of deliveries, the good news is that the response to the company’s third-quarter earnings is overwhelmingly positive. As of this writing, Tesla shares are up roughly 7 to 8 percent in after-hours trading, hovering around $223 per share.