Tesla's 2020 deliveries beat estimates but fall short of Musk's target

Tesla's 2020 deliveries beat estimates but fall short of Musk's target

New features are dawning on the electric vehicle, which is one of Tesla's most iconic units in the world, also one of the top sellers from the auto company.

"Musk & Co. basically hitting its 500k goal for the year is a major feather in the cap for the company and the bulls as Tesla saw robust Model 3 demand over the last 10 months despite the hurricane-like consumer headwinds seen globally" because of the Covid-19 pandemic, Wedbush analyst Daniel Ives wrote in a note after the results.

"At the start of Tesla, I thought we had (optimistically) a 10 percent chance of surviving at all", he said.

The company on Saturday last week said that it delivered 499,500 vehicles past year, including 180,570 sports utility vehicles (SUV) and sedans in the fourth quarter.

The electric-car maker delivered 180 570 vehicles in the last three months of the year, eclipsing its prior all-time high of 139 300 in the third quarter of 2020 while increasing 36% from 367 500 deliveries in 2019.

Tesla produced over 500k Electric Vehicles in 2020

In the fourth quarter, Tesla delivered 161,650 Model 3 and Model Y cars and produced 163,660 such vehicles. The surge, coming despite multiple share offerings, has vaulted Tesla's valuation to an auto industry-leading $669 billion.

China, which offers hefty subsidies for electric vehicles as it seeks to cut down on pollution from petrol- and diesel-fueled cars, is key to Tesla's global strategy. To reach a half-million, Tesla would have had to shatter the record and deliver 181,650 vehicles in the fourth quarter. Musk sent an email to employees in December urging them to increase production for the rest of the quarter as much as possible.

Tesla delivered 88,400 vehicles in Q1, and 90,650 vehicles in Q2.

It added the caveat on its website that: 'Our delivery count should be viewed as slightly conservative, as we only count a vehicle as delivered if it is transferred to the customer and all paperwork is correct'. Those two carmakers and others are preparing to flood the nascent market with dozens of battery-powered models over the coming five years.

During 2017 and 2018, Tesla tried to ramp up high volume production of the Model 3 sedan, with Musk at the time informing investors the company was mired in "production hell" because of problems with automated production systems at its battery factory in Reno, Nevada.

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