Tesla Shares Fall as Q1 Production and Delivery Numbers Fail to Impress

It's not the start to the year the electric car maker hoped for.

Tesla has delivered its Q1 figures for 2019. They show a big drop from Q4 2018 but give hope for a strong year ahead. The official figures from the electric car confirm the production of approximately 77,100 vehicles and 63,000 deliveries.

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These are down from the last record-breaking quarter of 2018 when 90,700 cars were delivered and 86,555 vehicles produced. Tesla didn’t go into details about the big drop in production but said the drop in deliveries was due to serious challenges in getting the Model 3 introduced into the Chinese and European markets.

Tesla shares have tumbled in the wake of the announcement. 

Tough delivery challenges

Delivery challenges resulted in a large number of cars getting stuck in transit between the factory and customers garages. About 10,600 Tesla vehicles are estimated to be in perjury with delivery expected in Q2.

By model, Tesla delivered 50,900 Model 3s and 12,100 of the Model S and X. Model 3 production was also slightly up from the last quarter ending the year with an average just over 5,000 units being pushed out per week.

Tesla has indicated the delivery problem is not helped by its model of producing all their cars from just one factory in the U.S.  The company plans to begin production from China to help overcome this issue. 

U.S continues to love Tesla

In a press statement released alongside the figures, Tesla said that support in the US continued to be strong. 

“In North America, Model 3 was yet again the best-selling midsize premium sedan, selling 60% more units than the runner up. Inventory of Model 3 vehicles in North America remains exceptionally low, reaching about two weeks of supply at the end of Q1, compared to the industry average of 2-3 months.”

Despite the federal tax credit getting cut in half demand for the Model 3 looks to stay steady. The Tesla brand will stay strong as fans wait for the production of the newly released Model Y.

Hotly anticipated Model Y

The SUV Crossover built on a modified Model 3 frame will come in four versions altogether. The first three, the Long Range (LR), the Dual Motor AWD (AWD), and the Performance (PERF) models, will be available in the Fall of 2020, with the Standard Range (SR) model becoming available in the Spring of 2021.

The all-electric vehicles will have all the Tesla features fans have come to know and love including being very quick off the mark and high safety ratings. The LR will have the power to go from 0-60 mph in 5.5 seconds, has a top speed of 130 mph, an effective range of 300 miles, and will start at $47,000.

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Looking forward to strong 2019

The AWD can go from 0-60 mph in 4.8 seconds, has a top speed of 135 mph, has an effective range of 280 miles, and will start higher, at $51,000. The PERF can go from 0-60 mph in just 3.5 seconds, has a top speed of 150 mph, an effective range of 280 miles, and will start at $60,000, the most expensive version of the Model Y.

Despite not delivering the best figures in the first quarter, Tesla's future doesn't seem to be in doubt. At least CEO, Elon Musk has managed to put his disastrous 2018 behind him and seems he has even had time to indulge in another passion project.

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