Tesla (NASDAQ:TSLA) Sales Grow By an Impressive 70 Percent

Tesla Motors Inc. (NASDAQ:TSLA) has disclosed that their third-quarter deliveries have gone up by 70 percent. The firm was able to deliver 24,500 cars, which means that they have managed to double the number of sales from a year back. In the same quarter last year, Tesla could deliver just 11,603 vehicles.

The delivery figures have gone up, thanks to a number of reasons – cheaper lease deals, discounts offered on a few automobiles, and production improvements. Deliveries are an important indicator of performance in the luxury electric vehicle market. Interestingly, the company had missed their delivery targets in the last two quarters.

Almost all the deliveries last year were of the company’s Model S flagship vehicle. It is still doing well. This time, Tesla has delivered 15,800 Model S cars, which is about 64 percent. However, both the Model X and Model S vehicles are still pricey for most people who are considering buying an electric car. The Model X costs $83,000 minimum, and the cost of Model S starts at $66,000.

Tesla Models Still Very Costly

This could be a problem for the business in the mid to long run, as the electric car market is beginning to get crowded. Other automobile manufacturers are getting in with their own versions. General Motors (NYSE:GM) will be launching their Chevrolet Bolt later this year, and it will cost just $37,495, way less than the Tesla models. Volkswagen too is expected to begin selling their I.D. for $30,000. However, that won’t be available for another three to four years.

The business is aware of this of course. And so, to stay competitive, Tesla (NASDAQ:TSLA) will be launching the Model 3, their first mass-market automobile next year. It is expected to cost $35,000.

Problems at Tesla

Tesla Motors, based out of Silicon Valley is losing money. However, the carmaker has plans of raising money from the equity market sometime later this year to fund the takeover of SolarCity and build the factory where their Model 3 will be made.

There were production problems at Tesla earlier this year. The company issued a statement in July saying that production would go up to 2,200 cars from 2,000, and eventually to 2,400 by the fourth quarter. In the third quarter, the production stands at just below the 2,000 cars a week mark.

Tesla’s third quarter financial results are expected to be out by early November.