Tesla Delivers in Q3

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Tesla Inc. (NASDAQ: TSLA) started out the week with a bang, and shares were up over 17% in Monday’s session following an update on Elon Musk’s status at the company. After this massive gain, the stock was down on Tuesday after Tesla announced its third-quarter deliveries.

In the third quarter, deliveries totaled 83,500 vehicles: 55,840 Model 3, 14,470 Model S and 13,190 Model X. To put this in perspective, in just this quarter, Tesla delivered more than 80% of the vehicles that it delivered in all of 2017, and it delivered about twice as many Model 3s as it did in all previous quarters combined.

Previously, the company guided that Model 3 vehicles would see deliveries in the range of 50,000 to 55,000. Also, the 26,903 Model S and X vehicles were slightly higher than the second quarter and in line with full-year guidance.

Separately, 8,048 Model 3 vehicles and 3,776 Model S and X vehicles were in transit to customers at the end of the third quarter and will be delivered early in the fourth quarter. The overall target of 100,000 Model S and X deliveries in 2018 remains unchanged.

The third-quarter Model 3 deliveries were limited to higher-priced variants, cash/loan transactions and North American customers only. Management believes that there remain significant opportunities to grow the addressable market for Model 3 by introducing leasing, standard battery and other lower-priced variants of the car, and by starting international deliveries.

Shares of Tesla were last seen down more than 1% at $306.08, with a consensus analyst price target of $310.05 and a 52-week trading range of $244.59 to $387.46.