Tesla Continues to Outsell Competitors, Sees Strong Demand for Model 3
【Summary】After a disappointing first quarter, Tesla’s sales look like they’re bouncing back for the second quarter as Model 3 registrations surged.
Things are a little tumultuous at Tesla these days. The electric automaker didn't have a great first quarter, as a report by CNBC claims that the brand lost $702.1 million during the first three months of 2019. There were various reasons as to why the brand lost so much money, including a decrease in demand, the loss of the federal tax credit, and numerous price adjustments that affected multiple models. Regardless of the reasons, Tesla's first quarter wasn't good.
Tesla Sees Great Numbers In May
It looks like things are on an upward trend once again, as CNBC reports that Tesla had an excellent May, which helped the brand extend its lead over competitors. "More Model 3s were registered in April and May than during all of the first quarter," wrote JMP Securities analysts Joseph Osha and Hilary Cauley in a note to investors, claims the outlet.
Thanks to the renewed interest in Tesla's most affordable model, JMP believes that the automaker's Q2 numbers should be better than the ones it put up in Q1. "It is evident that Tesla's Q2 volume should recover significantly from Q1," stated Osha and Cauley.
With new electric competitors from Audi, Mercedes-Benz, Jaguar, and more hitting the market, seeing Tesla's sales figure increase is probably a breath of relief for investors, as the brand continues to outpace rivals. CNBC, citing Morgan Stanley, states that Tesla's estimated total sales in the U.S. for the month of May, which currently sits at 11,300 vehicles, was 2.6 times the combined total of the automaker's competitors.
Why Tesla Needs A Great 2019
With the figures from the month of May set in stone, Morgan Stanley believes that Tesla will deliver somewhere between 360,000 and 400,000 electric vehicles by the end of the year. If those figures are correct, they would represent a healthy increase for Tesla, depicting a rise of roughly 45% to 65% from 2018.
Interestingly, it looks like Tesla CEO Elon Musk saw the Q2 boom coming. In a report that cited a leaked email earlier this year, Musk claimed that solving the automaker's production and logistics problems put the brand in a good position to deliver a record number of vehicles in the second quarter of 2019.
The increase in popularity comes at a good time for Tesla, which is in hot water. In May, a report claimed that Tesla CEO Elon Musk sent out an all-staff email claiming that the automaker would be out of money in 10 months. In order to keep the brand afloat, Musk was pitching "hardcore" cost-cutting efforts. What those hardcore measures are remains a mystery, but having a good Q2 is surely a way for Tesla to get out of the weeds.
Vineeth Joel Patel
Joel Patel has been covering all aspects of the automotive industry for four years as an editor and freelance writer for various websites. When it comes to cars, he enjoys covering the merger between technology and cars. In his spare time, Joel likes to watch baseball, work on his car, and try new foods
GM Sells Lordstown Plant to EV Startup Lordstown Motors
Polestar Opens Dealership in Oslo, Will Focus on China, U.S., Europe in 2020
Waymo Already Looking to Expand “Rider Only” Autonomous Taxi Service
Volkswagen Kicks Off Production of Fully-Electric ID.3
Penn State University Researchers Test 10-Minute EV Charges
Hyundai Envision Eco-Friendly Semi-Trucks With HDC-6 Neptune Concept
Waymo’s Detroit Plant Helping With Autonomous Car Production
MIT Teaching Autonomous Cars to See Around Corners
- Audi Close to Solidifying EV Battery Deal With China’s BYD, Report
- Lidar Startup Ouster Introduces a More Affordable 32-Channel Lidar Sensor for Self-driving Cars
- J.D. Power Study Finds New Car Owners Disable High-Tech Features
- BMW i Ventures Invests in Silicon Valley-based Flexible Circuit Maker CelLink
- U.S. to Test Camera-based Systems That Replace Traditional Glass Mirrors in Autos
- General Motors May Bring Back Hummer as a New Electric Truck Brand
- Elon Musk Says He’s Bringing a Model S to Nurburgring to Challenge the Porsche Taycan's Record Time
- Fiat Chrysler & PSA Group Reach Deal to Become the World’s 4th Biggest Automaker
- Elon Musk Confirms that the Tesla Roadster Will Take on the Famed Nürburgring
- What We Know About the 2020 Honda e Urban Electric Car So Far