Tesla reports 70 percent increase in quarterly sales, inches closer to targets

Tesla Motors witnessed an impressive third quarter this year as it confirmed delivering close to 24,500 vehicles. These included 15,800 Model S sedans and 8,700 Model X SUVs. That is an increase of 70 percent from the previous quarter and a 111 percent increase from Q3 2015. Vehicle production also rose to 25,185 which is an increase of 37 percent from Q2’s production of 18,345. “Our Q3 delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct,” said Tesla. Just to bring things into perspective, about 5,500 vehicles are currently in transit and will be counted in Q4. The improvement in deliveries is definitely going to bring the company closer in meeting its goal of 50,000 vehicles in second half of 2016. However, to achieve that, Tesla will have to maintain its numbers for the final quarter as it did in Q3. This acceleration is worth noting as Chief Executive Officer, Elon Musk had issued a letter to employees in August saying “The third quarter will be our last chance to show investors that Tesla can be at least slightly positive cash flow and profitable before the Model 3 reaches full production. Once we get to Q4, Model 3 capital expenditures force us into a negative position until Model 3 reaches full production. That won’t be until late next year.”

  The next quarter will be quite crucial for the company as it needs to prove to its investors that it has the ability gain momentum and sustain well. The company is already working on one of its biggest project, the Gigafactory, where the new Model 3 vehicle will created for the masses. Tesla has already received more than $10 billion in orders. It is trying its level best to encourage consumers into investing for its electric vehicles. The company has been offering a two-year lease program on the Model S and X vehicles and has also started producing a new Model S sedan with a larger battery and faster acceleration. However it needs to do a lot more to convince potential customers as the number of failed auto-pilot crash reports have created a negative vibe around the company. There were also reports of extensive discounts on the Tesla Motor forums to which could affect profit margins. But just last week, CEO, Elon Musk has sent out an memo to its employees to not offer any discounts on new cars and follow the company’s policies. It is trying its level best to encourage consumers into investing for its electric vehicles. The company has been offering a two-year lease program on the Model S and X vehicles and has also started producing a new Model S sedan with a larger battery and faster acceleration. However it needs to do a lot more to convince potential customers as the number of failed auto-pilot crash reports have created a negative vibe around the company. There were also reports of extensive discounts on the Tesla Motor forums to which could affect profit margins. But just last week, CEO, Elon Musk has sent out an memo to its employees to not offer any discounts on new cars and follow the company’s policies. Another research note published by Pacific Crest Securities analyst Brad Erickson had criticised Tesla for offering discounts on Model S inventory cars for specific customers, to boost third-quarter sales. While Musk has reportedly denied of the rumours, such a move is unethical. In my opinion, Tesla is one of the most impressive companies for this year as it has been working for the people. There is no doubt about the company’s vision and by staying on top of the EV business, it can prove to be one of the biggest electric car makers in the world. Tesla is also going to face a lot of competition in the coming years as a number of automakers like Volkswagen, Mercedes announced their concept electric vehicles at the Paris Motor show which will make their debut in the year 2020. Chinese content and hardware maker LeEco is entering the US andmis expected to showcase its LeSEE electric concept car on the 19th of October . The company could announce its plans to launch the car in the country.