Tesla Deliveries Worse than Expected

  • Tesla (TSLA 221.95 +6.31 +2.93%) delivered approximately 63,000 vehicles, approximately 50,900 Model 3 and 12,100 Model S & X. Analysts surveyed by FactSet has expected 76,000 deliveries, with about 54,600 of those being Model 3 sedans.
  • Increased deliveries in Europe and China, as well as other challenges, caused delivery delays, only half of entire quarter’s number were delivered by March 21st. At end of quarter approximately 10,600 vehicles were in transit, and a large number of vehicle deliveries had to be shifted to the second quarter.
  • Because of lower than expected delivery volumes and pricing adjustments, Q1 net income is expected to be negatively impacted.
  • Production exceeded deliveries by 22%
  • Tesla reaffirmed their prior guidance of 360,000 to 400,00 vehicle deliveries in 2019

Tesla pulled back sharply after hours Wednesday following the report, down 9%. It has come back slightly but is still down 24.44(8.36%) for today’s session.

With Tesla reaffirming prior guidance, they will have to deliver about 100,000 vehicles per quarter to meet their own low end delivery guidance. Prior all time high deliveries was in Q4 of 2018(last quarter) which came in at 90,700 vehicles, a number that outpaced their production by around 4.5%.

Quarter 2’s deliveries will be interesting to see.