Why Tesla Inc. Stock Is Trading Higher

The EV firm said that about 13,450 Model S sedans and 11,550 Model X crossovers were delivered during the quarter.

Tesla managed to increase its delivery rate by 69 percent compared to previous year, Fortune reports, which sets a quarterly record for the embattled tech giant. This suggests the gap between Tesla's Model X SUV and Model S Sedan is soon to swell, considering the figures published by the company. That means the Model X accounted for 46.2 percent of all cars Tesla has delivered in the quarter. Tesla also broke another quarterly record in the first 90 days of 2017: The largest number of vehicles produced.

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.

More substance is added company's longer-term and more ambitious growth plans because of Tesla's ability to hit targets. Those will be counted as sales in the current quarter.

According to CEO Elon Musk, the company is looking to ramp up annual production to 500,000, including the Model 3, in 2018. So far, Tesla said it had very few Model 3 orders from the Asian nation, where the vehicle had not been formally introduced. The company hasn't announced a full-year target for this year.

The company does not sell in Iran, as U.S. sanctions and a ban on American products in the country leave the market to Tesla's Asian competitors. Tesla sold 76,000 cars a year ago, compared to 6.7 million for Ford, whose sales have been lagging. While Tesla beat analyst estimates, Ford's March sales dropped 7.2 percent year over year, sending its stock down on Monday.

The figures reported by Tesla are preliminary, and may change when the automaker reports its quarterly earnings next month.

The company is reworking its lineup and price structure ahead of July's introduction of the Model 3, which is expected to begin at $35,000 before incentives and options.

  • Carolyn Briggs