This week, Tesla (NASDAQ:TSLA) has reported the delivery of 15,800 Model S and 8,700 Model X vehicles in the third quarter of 2016. that marks a total of 24,500 vehicles delivered this quarter, a significantly higher number than the 14,402 delivered in the previous quarter. In addition, though, at end of the quarter, the company already had 5,500 vehicles in transit, an amount which will be attributed to the next quarter.
Overall, company production in Q3 increased 37 percent from Q2—a total of 25,1185 up from 18,345—however, Tesla says, “Our Q3 delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct.”
Indeed, Tesla (NASDAQ:TSLA) says that the company only counts a vehicle as “delivered” once it is handed over to the end customer (with accurate paperwork). Thus, they report that it could lead to a marginal revision—not even 1 percent—in the delivery figure. Tesla also went on to clarify that quarterly financial results do not solely depend upon vehicle deliveries but on several factors including sales costs, movements in foreign exchange, and a mix of directly leased vehicle.
With this growth, Wall Street traders and investors will begin to look the company’s guidance through the rest of the year.
One number that will looked at by Wall Street traders and investors on Monday was going to be “guidance” for the rest of the year. And in terms of guidance, Tesla stated in a press release “we expect Q4 deliveries and production to be at or slightly above Q3, despite Q4 being a shorter quarter and the challenge of delivering vehicles in winter weather over holidays. Guidance of 50,000 vehicles for the second half of 2016 is maintained.”
Of course, one reason Tesla (NASDAQ:TSLA) may be doing so well is owner Elon Musk’s rigid enforcement of a no-discount policy (except maybe floor models and those damaged before delivery). In a memorandum posted to Twitter, Wednesday, he commented, “It is absolutely vital that we adhere to the no-negotiation and no-discount policy that has been true since we first started taking orders 10 years agoago. This is fundamental to our integrity and we maintained this policy even through the terrible depths of the great recession.”