Tesla reports record number of car deliveries in 1st quarter

Electric auto maker Tesla Inc (NASDAQ:TSLA) has delivered a record 25,000 vehicles in the first quarter, rebounding from production problems late a year ago.

While much smaller in quantity, the record-setting deliveries are a good sign for Tesla as it prepares to begin production of its first mass-market vehicle, the Model 3.

Ahead of an upbeat target of 25,000 vehicle delivery for the first quarter, the auto company boost its confidence and investors listed in stock on their watch lists.

The Model X was well received by reviewers on launch, but was plagued with bugs, most notably with its falcon doors.

Tesla claims it delivered 25,418 cars in the first quarter of this year, which equates to a 69 percent increase over Q1 2016. Consequently, those 4,650 vehicles will be included in Tesla’s second quarter delivery count. Of course, this is an impressive level of deliveries for Tesla to sustain; Model S is already outselling comparably priced large luxury sedans in North America and some other key markets, and Model X is among top sellers in its category.

Not surprisingly, the market reacted positively to Tesla’s latest delivery figures. Given the robust popularity of SUVs overall, it’s not too surprising that the Model X is catching up to the Model S.

Model S sales are up slightly from last year’s March quarter’s 12,410 vehicles (8%) and the December quarter’s approximate number of 12,725 cars (6%) but remain below the September quarter’s peak of 16,047.

Tesla is well on its way to achieving its ambitious goals for Model 3 production. The Model S deliveries represented a surge of 5.9%.

Recently, a Chinese technology company that is behind WeChat, Tencent, purchased a 5% stake in Tesla which is worth about $2.2 billion.

It’s been a tough couple of months to be short Tesla shares, as they have gained almost 30% this year.

Tesla’s stock closed Friday’s session at $278.30. Therefore, it is highly expected that Tesla will generate strong growth in its revenues, which could give further boost to its share price.

Tesla isn’t the only company making a cheaper electric auto, though.