Tesla Inc (TSLA) Stock Soars on Deliveries

Tesla claims it delivered 25,418 cars in the first quarter of this year, which equates to a 69 percent increase over Q1 2016.

Out of the total vehicles delivered, the USA luxury electric auto manufacturer said about 11,550 were Model X sports utility vehicles and almost 13,450 were Model S sedan. For instance, in the second quarter of 2016, the company produced about 18,345 vehicles compared to its targeted production of 20,000 units.

The Model X was well received by reviewers on launch, but was plagued with bugs, most notably with its falcon doors.

Its upcoming Model 3 is priced at a moderate $35,000 (32,800 euros) in the United States, far below the price of its initial S and X cars.

Meanwhile, in a statement, Tesla noted an additional "4,650 vehicles were in transit to customers at the end of the quarter".

The latest numbers will be a confidence boost for the company which faces an ambitious task ahead, with Musk saying production of Tesla's new Model 3 will start in July.

The Model S is the Tesla sedan.

Tesla has long said that the Model X could very well be the most hard vehicle in the world to manufacture, in part because the company jammed so many features into it. To that end, the company has plans to build at least three more Gigafactories later this year.

In the first half of 2017, the company expects to deliver 47,000 to 50,000 units of Model X and Model S combined. Those cars will count toward the company's Q2 delivery totals.

Following company's first-quarter sales, Tesla's stock rise up with shares are up with an impressive 63% and is trading at about $297.

Tesla (NASDAQ:TSLA) is among those stocks that have experienced a stunning share price rally in the last five years, making it an existing play for value investors, who like to create value through market volatility.

However, at the current rate (slightly over 100,000 cars a year), Tesla is still a long way from its 2018 production target of 500,000 vehicles annually.

  • Zachary Reyes