8 months ago • 2 mins
What’s going on here?
Numbers out over the weekend showed that Tesla’s hard work is paying off, with record-high deliveries last quarter.
What does this mean?
Tesla’s full results are due out later this month – and while you shouldn’t really count your chickens before they hatch, these delivery numbers are some pretty promising eggs. See, the firm delivered a whopping 466,000 vehicles last quarter, a 10% uptick from the previous one and a massive 84% leap from the same time last year. And that outpaces its already ambitious aim of selling 50% more cars every year. The recipe for that success: a mix of price cuts, government tax credits, and time-sensitive perks like three months of free fast-charging. Plus, the fact Tesla managed to narrow the gap between production and deliveries will ease investor worries about a buildup of unsold inventory.
Why should I care?
For markets: Not quite stock still.
Tesla shares have been on a tear lately, with a rally of over 150% this year pushing the company’s market value to more than $800 billion. But it’s not just about selling cars. Companies like General Motors, Ford, Volvo, and Rivian have all signed deals to adopt Tesla’s battery charging standards, opening up a new revenue stream for the company. That said, canny investors will still keep an eye on how profit margins are faring – especially since over 90% of the cars Tesla delivered were the less profitable Model 3 and Y offerings.
The bigger picture: BYDing its time.
Tesla’s not the only one setting records. Chinese rival BYD also posted its best-ever numbers last quarter, with over 700,000 “new-energy vehicles” sold – half fully electric sales, half plug-in hybrids. So while Tesla still leads in purely electric vehicle sales, it’s actually growing more slowly than BYD. And with the Chinese upstart looking to expand globally, the race for the crown is only set to heat up.
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