Tesla Inc. (NASDAQ: TSLA) reported its third quarter delivery and production results, topping analysts’ estimates. Tesla shares were trading 1.7% higher during Tuesday’s pre-market hours.
In the third quarter, Tesla produced 80,142 vehicles, increasing 50% year over year from its previous all-time high in the second quarter. Of the total production, 53,238 Model 3 vehicles were manufactured, which fell in line with the Company’s guidance and double the volume from the second quarter. Tesla produced 14,470 Model S and 13,190 Model X vehicles.
Tesla said that this quarter was significantly stronger than its previous ones, allowing it to deliver 80% more vehicles in the quarter compared to all of 2017. This quarter alone delivered more Model 3 vehicles than every quarter previously combined.
Tesla continued to say that its Model 3 deliveries were limited due to higher priced variants, cash/loan transactions and North American customers only. The Company said there are still opportunities for the Model 3 to grow within the market by introducing leasing, standard battery and other lower priced variants of the car and starting international deliveries.
Due to the ongoing issues with China, especially with the 40% import tariffs, Tesla says it makes the region a difficult and challenging market to enter, despite it being the largest electric vehicle market. In order to address the issue, Tesla accelerated construction of its Shanghai factory.
There were 8,048 Model 3 vehicles and 3,776 Model S and X vehicles in transit to customers, which is expected to be delivered in early fourth quarter. Tesla’s target of 100,000 Model S and X deliveries for the year remains the same.
Tesla was able to stabilize its production, but it said its delivery and outbound vehicle logistics remained its main challenge within the quarter. The Company was able to make improvements, which will help it in its fourth quarter.
“We want to thank the entire Tesla team for executing so well during this challenging ramp up in deliveries. We also want to thank all of our customers who volunteered to help us with deliveries, and our new customers who are showing their faith in Tesla by purchasing our products in such large numbers. It was beyond inspiring to see the contributions made by the whole Tesla community,” said Tesla.