Automotive

Tesla Inc (NASDAQ:TSLA) shares up after record quarterly deliveries of 25,000 vehicles

Tesla Inc (NASDAQ:TSLA) on Sunday said that its vehicle deliveries jumped to 25,000 vehicles in the first quarter, up 69 percent from the same period last year. Three industry analysts on average were looking for 24,200. TSLA shares have surged more than 3 percent in the pre-market on Monday following the news.

Out of the total vehicles delivered, the U.S. luxury electric car manufacturer said about 11,550 were Model X sports utility vehicles and nearly 13,450 were Model S sedan. TSLA also reported that production in the first three months reached to a record 25,418 vehicles.

In the first half of 2017, the company expects to deliver 47,000 to 50,000 units of Model X and Model S combined.

TSLA experienced short-term production issues in the fourth quarter due to which the deliveries fell 9.4 percent in that quarter.  The delays mainly occurred amid a transition to a new autopilot hardware.

The Palo Alto, California-based company still has to show that it can produce cars in large numbers. CEO Elon Musk said TSLA intends to produce 500,000 vehicles next year. However, this aggressive target depends on battery-cell production at its Gigafactory located in Nevada. The company hasn’t announced a full-year target for this year.

Tesla (NASDAQ:TSLA) shares opened at $278.73 in the last trading session, and after hitting a high price of $279.68, finally closed the day at $278.30. The 52-week range of the stock is $178.19-$287.39. TSLA shares have surged about 30 percent so far this year. The company’s market cap is $45.40 billion.

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