Tesla Delivers More Cars Than Expected

Electric auto maker Tesla Inc (NASDAQ:TSLA) has delivered a record 25,000 vehicles in the first quarter, rebounding from production problems late past year.

Recently, Tesla announced that they delivered more than 25,000 vehicles, including approx.

That's a new quarterly record for the Silicon Valley company, which delivered 76,230 cars a year ago.

Toward the end of last month, China's Tencent Holdings bought a 5-percent stake in Tesla for $1.78 billion, providing the company with an additional cash cushion as it prepared to launch its Model 3 later this year. Musk is banking on full-scale production of the Model 3, which will sell in higher volumes than the Model S or Model X thanks to a $35,000 base price.

Tesla had said production challenges, which started at the end of October and lasted through early December, shifted vehicle production towards the end of the fourth quarter, resulting in delayed deliveries. According to the company's report, 13,450 of the cars shipped were Model S units, while Model X units made up 11,550 of the total number.

Elon Musk's electric vehicle company, Tesla, is now worth more than legendary USA automaker Ford Motors.

The Model X is gaining traction in Tesla's quarterly sales numbers. Musk has said he would like Tesla to manufacture more affordable cars down the road, which would put his company in competition with Ford's fleet of lower-priced electric cars.

After a slow start in Germany for the first 3 years of presence in the country, Tesla started making progress in this hard market dominated by local manufacturers last year and the progress is continuing in 2017.

It isn't new for the company to miss both vehicle delivery and production targets. Consequently, those 4,650 vehicles will be included in Tesla's second quarter delivery count. Its US$45.4 billion market value is just $870 million less than Ford, which produces millions of vehicles a year. Employees will have the ultimate first shot at taking delivery of a new Model 3.

Tesla was founded in 2003 by Musk, he's also the man behind space rocket firm, SpaceX.

This year it plans to start selling a cheaper auto in the U.S., the Model 3, which it hopes will have mass market appeal.

  • Zachary Reyes