Tesla’s Q1 2019 car deliveries
On April 3, American electric carmaker Tesla (TSLA) released its first-quarter car deliveries and production figures. In the quarter ended March 2019, the company’s car deliveries (XLY) surged 110% on a YoY basis to 63,000 units. In contrast, Tesla’s first-quarter deliveries fell by 30.7% on a sequential basis. These car deliveries included 50,900 units of Model three and 12,100 units of Model S and X.
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Why Tesla’s deliveries growth rate declined
Previously in the fourth quarter of 2018, Tesla’s car deliveries grew at a much higher rate of 203.6% YoY and 8.6% sequentially. The sharp decline in the company’s first-quarter car deliveries growth rate as compared to fourth-quarter deliveries was primarily due to the transit challenges TSLA faced to deliver its cars to the Europe and China markets.
The company started delivering its lower-priced sedan Model 3 to European countries and Chinese markets for the first time in the last quarter. Unlike delivering cars in its home market, Tesla faced many transportation-related issues while shipping cars to international markets.
Over 10,000 cars in transit
On January 30, in its fourth-quarter 2018 earnings report, Tesla already warned that its first-quarter car deliveries are expected to be lower by about 10,000 units than the production. The company cited extended vehicle transit times to Europe and China.
However, its actual first-quarter car deliveries were about 14,100 lower than its car production figures during the quarter. On the positive side, at the end of the first quarter, the company had about 10,600 units in transit to customers, which should help it boost its second-quarter car deliveries figures.