Tesla defies skeptics and sets a new record for deliveries in 2019

Tesla defies skeptics and sets a new record for deliveries in 2019

Tesla defies skeptics and sets a new record for deliveries in 2019

Analysts in the past have questioned how rapidly Tesla's vehicle sales will grow as government subsidies for electric vehicle purchases dwindle in the United States, China and other markets. A lot of the rally has had to do with short-covering by investors who had bet shares would decline in 2019, but some of it can be attributed to the momentum Tesla has been experiencing.

2019 may very well have been a watershed year for Tesla.

US electric vehicle (EV) manufacturer Tesla cut the beginning price for its China-made Model 3 sedans by 16% to 299,050 yuan ($42,919) after receiving Chinese units for EV, in response to its China website.

Analysts claim that as Model 3 sedans roll off Tesla's Shanghai production line with local subsidies intact, the US based focus will need to shift globally for the automaker.

The US$2-billion factory, Tesla's first vehicle manufacturing site outside the United States, is the centerpiece of its ambitions to boost sales in the world's biggest auto market and avoid higher import tariffs imposed on USA -made cars.

"We continue to focus on expanding production in both the U.S. as well as our newly launched facility in Shanghai., wrote Tesla in a press release announcing the deliveries for the fourth quarter". It said the plant demonstrated a production run-rate capability of more than 3000 units per week.

Here's what four analysts had to say about Tesla after the record report. Tesla stock jumped 5.5 per cent on Friday morning, reaching an all-time high of US$454 a share. The average price target comes in at $300.54, and reveals the Street sees the stock losing 32% over the next 12 months.

Given Tesla's global glamor and popularity among Chinese consumers, the price tag makes it competitive with Chinese rivals' products, such as Nio's popular SUV ES6, which is priced at 358,000 yuan.

Tesla also plans to add production capacity for the European market, announcing in November that it will build a new auto factory in Berlin that reportedly could start up by 2021.

The deliveries come a year after the building of Tesla's only plant outside the USA started.

A sizable chunk of Tesla's 2019 deliveries - 112,000, to be exact - occurred in Q4 2019, which is to be expected. "We are confident about selling all vehicles manufactured in this factory".

While growing from a low base, the figure suggests healthy demand for its cars even though all the models available thus far have been the pricier imported versions of the Model 3, and the higher-end Model S sedan and Model X SUV.

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