In recent months, Tesla skeptics have argued that the company’s growth has stalled. After delivering a record-breaking 83,500 vehicles in the third quarter of 2018, the company’s deliveries increased modestly in just the next few quarters: 97,000 in the third quarter of 2019, for example, and 90,650 in the second quarter of 2020.
ARS Technica
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But Tesla’s Q32020 number, issued Friday morning, calmed the anxiety. Tesla says it shipped 139,300 vehicles in the third quarter of 2020. It has risen percent and percent in the last quarter and 45 percent in the year-ago period. It also represents a 24 percent increase from Tesla’s previous best quarter – the fourth quarter of 2019.
The number rose slightly on the consensus forecast of Wall Street analysts, but shares of Tesla still fell about one percent in trading on Friday morning.
The surge in Tesla deliveries probably reflects the start of Tesla’s new factory in Shanghai earlier this year. Had it not been for the coronavirus, Tesla would have achieved record-breaking numbers in the first and second quarters. But Tesla had to close the Shanghai factory shortly in the first quarter, and the Fremont factory closed from mid-May to mid-May. So for the first time in the third quarter, both factories were operating in a quarter.
Rapid growth is important for Tesla to justify its astronomical stock value. Wall Street gives Tesla more than સં 400 billion more than the combined market value of GM, Ford, Volkswagen and Toyota. This is despite the fact that those companies make millions of cars every year, while Tesla delivered only 367,500 in 2019.
Earlier this year, before the extent of the Covid-19 epidemic became known, Tesla said it had set a target of delivering 500,000 vehicles this year. So far this year, Tesla has delivered 318,000 vehicles. Tesla will need to deliver more than 180,000 vehicles in the fourth quarter to meet the target.
Tesla has laid the foundation for rapid growth over the next two years, with plans to open additional factories in the Berlin area and near Texas Stin, Texas. Those factories will support Tesla’s expanded line of vehicles, including this year’s new Model Y and the upcoming Cybertruck, Semi and new Roadster.
Tesla continues to see disruptive sales of its high-end Model S sedans and Model X SUVs. In the third quarter of 2020, Tesla sold only 15,000 expensive vehicles. That’s a lot less than the 27,000 S and X vehicles Tesla sold two years ago. This probably reflects the fact that since these vehicles were introduced in 2012 and 2015, respectively, they do not have major refreshments. The new and cheaper M Model Dell 3 and M Model Dell Y could easily be in their sale.
Tesla plans to launch a new high-end Model S called the Model S Plaid next year. It will start with the Model 139,900, making it significantly more expensive than the current Model S.
The story appeared on the original Ars Technica.
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