This is a special edition of Tesla Weekly as Tesla released a press release this morning pre-announcing the number of cars delivered for Q1. Usually Tesla waits until their quarterly earnings to announce such figures, but they've decided to change their policy and announce delivery numbers within 3 days after the close of the quarter.
Below is the full press release by Tesla followed by some of my comments.
Here are some of my thoughts regarding Tesla's announcement of 10,030 vehicles delivered in Q1 of 2015.
I like that Tesla has decided to announce delivery numbers within three days of quarter end. There has been rampant speculation (and lots of FUD as well) after each quarter since there usually is several weeks between the close of the quarter and the quarterly earnings report. By announcing delivery numbers within 3 days after the close of the quarter this will reduce the amount of guesswork and speculation leading up Tesla's quarterly reports (which has only added to volatility in the past).
While Tesla pre-announced the numbers of Q1 deliveries there still are many other things we will need to wait until quarterly earnings (1st or 2nd week of May) to find out. How strong has order flow been for the Model S? How's demand in Europe? How's demand in China? What's the status of the Model X? What will be guidance for Q2 2015? And what is the mystery announcement on April 30th?
While Tesla delivering 10,030 isn't a blowout of guidance (guidance was 9,500 cars delivered), it still is very positive that Tesla beat their stated goals for deliveries. Recently there's been quite a lot of doubt around Tesla's ability to execute (since failing to meet delivery guidance for 2014) and that's affected the sentiment around the stock. However, Tesla has managed to delivery 500 more cars than their stated goal and that's good news as it strengthens the perception of how well Tesla is executing. Since a lot of Tesla's stock value is placed on the confidence in Tesla's execution, this could be a significant turning point for the stock. There still lies questions on whether Tesla can deliver a stellar Model X, whether they can ramp production of the Model X quickly, and whether demand for the Model S/X can continue to grow at a rapid pace. Further, Tesla still needs to overcome some hurdles in China, and ultimately Tesla needs to show that they are on track to deliver on their Model 3 promises.
We should also be hearing more news on the Model X front in the coming months, and it should be exciting to see if the Model X can redefine and shake up the luxury SUV market.