Tesla Sees 70 Percent Jump in Third Quarter Deliveries
Tesla Motors saw a leap in deliveries during the third quarter, up 70 percent over the previous quarter.
The electric carmaker expects deliveries to come in “at or slightly above” the July-to-September numbers during the fourth quarter. That would position Tesla to produce more than 2,000 all-electric vehicles each week for the rest of the year.
Of the 25,185 units sold and delivered during the third quarter, 15,800 were Model S and 8,700 were Model X. Production and deliveries of the Model X sport utility have improved lately but still lag behind the Model X sedan.
The company says this could translate into a profit using non-standard accounting procedures. That would follow some recent heavy losses as the company has fallen behind its production schedule, and has invested heavily in its Gigafactory in Nevada and the recent merger with SolarCity.
Tesla is also working hard at emerging from problems coming from the Model X falcon-wing doors not working safely and effectively. While the falcon-wing doors have riveted attention on the SUV, the door system’s mechanics have been plagued with quality problems. Tesla last week settled a lawsuit with an engineering firm that it blamed for problems in the original hydraulic door system.
CEO Elon Musk has promised to prioritize quality over production volumes.
Hitting the 25,185 total translated into about 2,000 Model X and Model X vehicles being produced weekly. Tesla originally had hoped to hit 2,200 vehicles for the quarter and climb to 2,400 for the fourth quarter.
In August, Tesla’s Chief Financial Officer Jason Wheeler said that if Tesla can come through it had, “a great chance of being non-GAAP profitable.” Using GAAP (generally accepted accounting principles) has been another methodology used by Tesla outside industry standard practices.
Improved sales performance should bring a great deal of relief to a company wrought with difficulties this year. The May 9 fatal crash Florida involving the Autopilot system is still under federal investigation. A second death recently reported in China may have been caused by the semi-autonomous system, but it hasn’t been confirmed with it was operating at the time.
Tesla has also been embroiled in controversy involving the planned acquisition of solar panel company Solar City. Shareholders have sued over the merger deal.
Tesla has been aiming toward launching and delivering the Model 3 electric car by late 2017. The company has pledged to ramp up production of its vehicles to 500,000 in 2018. That’s a giant leap for an automaker producing less than 100,000 new electric cars this year.