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Tesla Model 3 deliveries beat Wall Street targets, shares up 7%

Tesla Model 3 deliveries beat Wall Street targets, shares up 7%
A row of new Tesla Model 3 electric vehicles is seen at a parking lot in Richmond, California, U.S. June 22, 2018. Picture taken June 22, 2018. REUTERS/Stephen Lam -
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(Reuters) – Tesla Inc <TSLA.O> beat expectations for deliveries of its Model 3 sedan in the second quarter, a performance that could ease concerns about demand for the new electric sedan.

The company’s shares rose 7.19% to $240.70 in after-market trading.

Tesla delivered 77,550 Model 3s in the quarter, compared with analysts’ average estimate of 73,144, according to IBES data from Refinitiv.

Deliveries of all models rose 51% from the first quarter to 95,200 vehicles, including 17,650 Model S and X. Analysts on average were expecting total deliveries of 89,084.

Chief Executive Officer Elon Musk has repeatedly said Tesla could deliver a record number of cars in the second quarter, beating the 90,700 it sent to customers in the final quarter of last year.

Musk is struggling to convince investors that demand remains high for Tesla cars and that it can be delivered efficiently and swiftly to customers around the world.

Tesla has been trying to make up for a difficult first quarter, in which deliveries plunged and the company lost $702 million (556.6 million pounds).

The company said earlier this year it would turn a profit in the second half of 2019, a delay from earlier projections. The company has said it will deliver 360,000 to 400,000 vehicles in 2019, a goal many analysts predict will be difficult to meet.

Overall, total production rose 13% to 87,048 vehicles compared to the first quarter. The company churned out 72,531 Model 3s in the second quarter, up from a total of 62,950 Model 3s in the preceding quarter.

(Reporting by Munsif Vengattil and Vibhuti Sharma in Bengaluru; Editing by Shounak Dasgupta)

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