Tesla TSLA recently reported stellar third-quarter 2020 vehicle production and delivery figures.
The company registered deliveries of 139,300 vehicles in the September-end quarter, smashing its previous record for deliveries of 112,000 cars. The reported figure included 124,100 deliveries of Model 3/Y and 15,200 of Model S/X.
The third-quarter deliveries compare favorably with the 90,650 vehicles sent out in the June-end quarter. It also surpasses the 97,000 deliveries made in the corresponding quarter last year, marking a 43.6% year-over-year increase.
The company anticipates to deliver roughly 500,000 vehicles in 2020, suggesting a 36% year-over-year rise.
Tesla’s delivery count only reflects those vehicles which are transferred to the customer with all documentation completed successfully, thus being slightly conservative. Final figures are subject to an error of roughly 0.5%.
The company stated that it produced a total of 145,036 vehicles during the third quarter, entailing the production of 128,044 units of Model 3/Y and 16,992 of Model S/X.
Reportedly, the red hot Electric Vehicle (EV) maker slashed the prices of its flagship Shanghai-made Model 3 electric sedan by almost 10% in China.
The Model 3 sedans manufactured in Tesla’s Shanghai factory, with a standard driving range will now retail for roughly 249,900 Yuan ($36,800), after taking into account Chinese government subsidies. Previously, the starting price for basic Model 3 sedans was 271,550 Yuan ($39,990), after Chinese purchase subsidies.
Moreover, the price for Model 3 vehicles with a longer range has now plunged to 309,900 Yuan ($45,640) from the earlier 344,050 Yuan ($50,670).
The news of the price drop came in after Reuters reported that Tesla’s standard range Model 3 sedans’ future models will be equipped with lithium iron phosphate batteries, which are cheaper than the nickel-cobalt-manganese cells it used previously.
More importantly, the EV giant aims to eliminate the usage of cobalt in battery cells. As cobalt is one of the most expensive metals used in battery manufacturing and its procurement is challenging, the company intends to avoid cobalt, and increase nickel content and include manganese instead.
However, Tesla failed to provide details about which batteries the standard-range car with the updated price is currently using.
Zeal to Make the Most Affordable EV
Tesla has revolutionized the EV space much the same way as Amazon has changed the retail landscape and Netflix transformed entertainment. With the Model 3 sedan being its flagship vehicle, Tesla is the market leader in battery-powered electric car sales in the United States. Though Model 3 is the hottest EV in the world, at the same time it is one of the most expensive models.
At the company’s much-awaited Battery Day event held on Sep 22, CEO Elon Musk promised a $25,000 worth electric car, making it the most affordable vehicle ever manufactured by Tesla. The firm intends to achieve this feat by lowering battery costs by 50% through deploying the new tabless battery cells and modifying the battery composition. The price cut of its flagship model is in sync with the company’s long-term goal to offer the most affordable EV.
Moreover, Musk promised that the low-cost EV — likely to be available in the market in the next three years — would be fully autonomous.
Until then, there are other EVs already available at competitive prices, such as Nissan’s NSANY Leaf and Volkswagen’s VWAGY ID 3.
Furthermore, General Motors GM is selling, via its joint venture with SAIC-GM-Wuling Automobile Co, the best-selling EV in China — Hong Guang Mini EV — which is priced between $4,200 and $5,700 and offers a range of up to 106 miles.
Tesla currently carries a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, shares of the company skyrocketed 396.1%, year to date, compared with its industry’s rally of 130.8%.
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