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eToro Market Focus: A Deeper understanding of Tesla’s Deliveries Report

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  • Etoro

Every January, right after the New Year, TESLA traditionally releases its Quarterly (Q4) vehicle delivery report. This is ALWAYS before the earnings report. The last Q3 earnings report, in which the company managed to meet its first profit and production targets ever ($6.8 billion in revenue and $312 million profit), was very positive for investors. The markets reacted accordingly and the price jumped. But deliveries (and production) were always a major struggle and as CEO, Elon Musk said himself, it is a production and logistics hell!

Last October saw the latest deliveries report, about 3 weeks before the earnings report. Back then, deliveries exceeded expectations. The company delivered 83,775 vehicles – 3,775 above estimates. Still, TESLA shares fell 1.3 percent over concern about the company’s profitability. No one could have known that 3 weeks later, those concerns turned out to be false.

As mentioned before, TESLA outperforms the overall markets, even though it is also pulled down by the markets. TESLA stock is still up 2% for 2018 and outperforming the S&P500 8% decline.

If TESLA manages to keep up the pace of its deliveries and reports another solid number, it could potentially see the price go up again. Its production forecast is set at 100,000 vehicles. The report is expected to be released in the first couple of days of January.

On another note, below you can see Tesla’s dominance in the U.S. EV market.

And also interesting to see is how Tesla has taken over the US luxury car market. No wonder all other car manufacturers are racing to develop their own version of EV.

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