Tesla’s deliveries hit record high

“First of all, it’s good for the quarterly results, having a higher number of deliveries”, Robert W. Baird analyst Ben Kallo told IBD.

Most of the companies in the world are trying to sell their electric cars in an environment with constant low fuel prices, however, Tesla Motors Inc (NASDAQ:TSLA) has decided to appeal a different buyer compared to its rivals.

Over the past 52 weeks, the shares of Tesla Motors traded between $181.40 and $291.42 per share. The company noted in its announcement that the second quarter total may change by less than 1% due to the way it counts deliveries. Most of that sales volume would come from the $35,000 Model 3 electric sedan that customers should begin receiving in early 2018 if all goes as now planned. If the company can produce several thousand SUVs without slowing down its sedan production, the 55,000 goal should be in the bag. Output and deliveries are projected to increase with the introduction of the Model X sport utility vehicle this quarter. Tesla (NASDAQ:TSLA) claims that since having been expanding operations in Florida’s factory, they had been expecting 12500 vehicles but are content with results at the moment. “Therefore, we believe EVs are likely to remain more niche for the foreseeable future, while company-specific initiatives will continue to challenge earnings, cash flow, and returns in the near-term,”.

Model X could make or break the second half of 2015For Tesla to achieve 70%-plus sales growth in 2015, the company appears heavily dependent on a successful Model X launch. Tesla owns its sales and service centers and Supercharger stations.

Tesla Motors Inc designs, develops, manufactures and sells high-performance fully electric vehicles and electric vehicle powertrain components. The 12-month average price target assigned to the stock is $301.09, which represents a potential upside of 11.9% from where the stock is now trading. That means an additional 500 to 1,000 sales of Model S vehicles are the equivalent of $US50 million to $US100 million in revenues. Tesla’s modus operandi is to sell high-end cars in different auto segments, and use the profits to realize greater efficiencies in the production and distribution process in order to bring down the unit price and expand its market share.