Tesla met its delivery goal for 2019 sending shares of its stock to a record high, according to Reuters. This follows a strong few months for the company that included a surprise profit for the last quarter.
- Tesla met its delivery goal for 2019.
- This sent shares of Tesla stock to a record high.
- The Model 3 sedan accounted for the bulk of those deliveries.
Much of the company’s recent success comes from demand for the Model 3 sedan. This mass-produced vehicle has in a lower price point that makes it a more affordable choice for those looking to purchase an electric vehicle.
Tesla beat its delivery goals for 2019 with a lot of help from the Model 3. (Photo: Getty Images)
The Model 3 Dominates Sales
Of the 112,000 deliveries made last quarter, there were 92,550 Model 3s followed by 19,450 units of the Model S and Model X combined. That beat market expectations of 104,960 total units and brought the year-end total to 367,500. This just beat Tesla’s target of 360,000 to 400,000 vehicles for the year.
The news sent shares of Tesla stock soaring. The stock was up by as much as 5.5 percent with a value of $454 per share. Tesla is currently at a market valuation of $80 billion which beats automakers including General Motors and Ford.
Also boosting Tesla’s outlook is its new factory in Shanghai, China. Ground broke on the factory in early 2019 and production started in October. Just before the end of the year, Tesla made its first deliveries of China-built Model 3 production units to employees. Deliveries to additional customers are expected to begin this month.
Analysts are unsure how long Tesla can maintain its momentum. Government rebates help make its vehicles more affordable, but those subsidies are dwindling. The lower price of the Model 3 could be what lets Tesla continue its streak.
WHY THIS MATTERS
Tesla has long faced skepticism from critics who decry build quality and question CEO Elon Musk’s behavior. Despite those concerns, deliveries are up with the Model 3 accounting for a huge percentage of sales proving CEO Elon Musk made a solid bet bringing a more affordable Tesla to market.