Tesla Keeps Up With Deliveries, Still Far From Financial Recovery - International Business Times

Tesla sales are getting healthier with the success of the Model 3, S and X deliveries recently. The Model 3 has hit record sales, while the Model S and X have recovered from a sales slump. Even so, the company still needs to do more to reach financial profitability.

Tesla has been doing well in sales on the Model 3, S and X, according to Yahoo Finance. Most of the sales came from the boom in Tesla deliveries for all these three models.

The Model 3’s sales went up by 320 percent compared to its second quarter sales last year according to the company’s data shown on MotleyFool’s report. During the company’s second quarter last 2018, the company was experiencing setbacks which put its production behind schedule for almost half a year. However, Tesla has since recovered from this and the Model 3 has been a popular pick for consumers for Tesla’s second quarter of 2019.

Meanwhile, the Tesla Model S and Model X units have also done well in this quarter. Similar to the Model 3, both Model S and X deliveries have been down in previous years and just increased to 46 percent more for this year. At best, Tesla CEO Elon Musk wasn’t lying when he said that that the company is actually breaking their records for this quarter despite the negative press about their performance as of late.

While all of this improvements will help Tesla’s bottomline, most of their sales are still Model 3 units rather than Model S and Model X ones. The company has sold more of their cheaper vehicles rather than the Model S and Model X which are supposed to bring more money to the company.

While the cheaper Tesla vehicles are doing well, this is a good sign for the upcoming Model Y crossover SUV. The electric crossover SUV is planned to marketed with its great features and affordability. Tesla hopes that this approach will help them reach a wider audience and help them earn more money in the long run.

As of now, the company has yet to be free of debt and have itself in financial profitability. The company has currently been successful in winning a tariff exemption which helps lower production costs. The company needs every penny it can save to avoid the impeding bankruptcy its CEO foresees in ten years time.

This chart shows the number of Tesla cars delivered worldwide by quarter. Photo: IBT / Statista