Tesla’s Q1 2019 car production
In the first quarter of 2019, Tesla (TSLA) produced about 77,100 cars. This production figure reflected about a 123.5% YoY increase but a 10.9% sequential drop. In the fourth quarter of 2018, the company’s production grew at a much faster rate of 252.4% YoY and 8.0% sequentially.
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Model 3 production in Q1
In the quarter ended in March 2019, TSLA managed to keep its Model 3 sequential production growth in the positive territory. The company produced (VXF) about 62,950 units of Model 3, up 2.5% as compared to 61,394 units produced in the previous quarter. Tesla’s first-quarter Model 3 production grew at a solid 554.6% on a YoY basis.
Model S and X production
Tesla produced about 14,150 units of Model S and X combined, up about 57.2% YoY, but down 43.8% sequentially. In the fourth quarter of 2018, the company produced about 25,161 units of Model S and X. As of February 28, Tesla made up about 0.7% of the Invesco QQQ Trust’s (QQQ) total portfolio.
What do production figures mean for investors?
In the last year, a lot has been said about Tesla’s ability to maintain its high production volume (XLY). While the company’s first-quarter car deliveries weren’t impressive due to extended transit times, TSLA certainly managed to demonstrate its ability to maintain high volume production going forward.
Investors should expect Tesla bears to exploit the opportunity to slam the company for its lower-than-expected car deliveries, which could turn its stock negative in the short term. However, we expect a positive trend in Tesla’s Model 3 deliveries and production along with its expanding international market reach to help its stock in the medium to long term.