Tesla beats analysts’ estimate for annual car deliveries sending the stock to a record high

on Jan 5, 2020
Updated: Mar 11, 2020
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  • Tesla beats analysts' estimate for annual car deliveries that sends stock to a record high of $454.
  • Tesla delivered 367,500 vehicles in 2019 owing to a sharp increase in overseas demand for Model 3.
  • Tesla's Gigafactory 3 in Shanghai has the capacity of producing 3,000 vehicles per week.
  • Tesla's affordable Model 3 manufactured in China is to be showcased to the public on January 7th.

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Following a few troubled years, 2019 finally saw Tesla Inc. beating analysts estimate for the total number of vehicles delivered in a year. As per Elon Musk, the founder and CEO of the American electric car manufacturer, the company hit the bottom end of an internal estimate for annual car deliveries that fueled the stock prices to a record high for Tesla.

Tesla Inc. Delivers 367,500 Vehicles In 2019

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Based on Refinitiv’s data, analysts had expected a total of 104,960 deliveries for Tesla in 2019’s Q4. Beating the estimate, the company delivered 112,000 vehicles in total including 19,450 SUVs (both S and X), and an incredible 92,550 Model 3s. The company cited a sharply increase overseas demand for its Model 3 to have contributed the most in beating the analysts’ forecast.  

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In terms of annual vehicle deliveries, Tesla had forecast 360,000 to 400,000 cars in 2019. Printing 367,500 deliveries, the company celebrated hitting the bottom end of its own target as the stock fueled to a record high of $454.

The Silicon Valley carmaker has left behind traditional car manufacturers such as Ford Motor Co, and General Motors Co, with a market valuation that has crossed $80 billion. 

The statistics have silenced all those who were skeptical of Musk’s management after his questionable behavior that caused federal regulators and Tesla shareholders to keep a close eye on him.

With around 30 million followers on Twitter, Musk has a habit of mouthing off tweets. This previously led to him being investigated by the SEC. He was also sued for defamation. 

But, the SEC complaint was settled in 2018 for a hefty sum of $20 million. The jury in Los Angeles also acquitted Musk in December in the trial for defamation. 

Tesla’s Shanghai Factory Is Expected To Help Sustain The Deliveries

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Sources from China also report that Tesla’s first production house outside of the U.S, aimed at avoiding higher tariffs, is performing increasingly well. The Shanghai factory has the capacity to produce 3,000 units per week for the electric car manufacturer.

The affordable Model 3 Sedan manufactured in China will be showcased to the public for the first time on January 7th. 

With multiple governments including the U.S and China planning on reducing subsidies on electric vehicles, analysts are keenly observing the impact it will cast on the overall sales for Tesla as the subsidies are known to be a driving force behind the purchase of electric vehicles.

On the other hand, with Iran announcing an increase in the oil prices, Q4 sales for traditional car manufacturers are expected to take a hit. As the fuel prices rise, sales of fuel-powered vehicles are likely to go down which may translate into higher sales for Tesla.

GM confirmed that their deliveries decreased by 6% while Fiat Chrysler Automobiles suffered a 2% decrease in its sales in the U.S.

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