Thanks to the outstanding sale of the Tesla Model 3 cars and a greater demand for electronic vehicles, the company had an economic relief and a price increase in its shares.

According to an annual report on Saturday, Tesla Inc (NASDAQ: TSLA) managed to deliver 499,550 cars — failing short to achieve Elon Musk‘s goal of delivering 500,000 vehicles by the end of 2020.

Tesla’s Q4 report displayed an increase in deliveries by 36 % compared to Q3, by producing 179,757 vehicles and delivering 180,570. In total, the company made 509, 737 vehicles — with Model 3 taking the lead in production. Likewise, the Model 3 was the best-selling electric plug-in vehicle of 2020, with more than 300,000 units sold.

Compared to the 2019 annual report when the company reached a total of 367,500 vehicles, Tesla set a new record thanks to the increase in demand for more eco-friendly vehicles. However, the reported numbers shouldn’t be considered the final results — as the total number of deliveries will be displayed along with Q4 revenues.

The company added that numbers could vary when the financial performance of Tesla is released, and possibly reaching the goal of 500,000 delivered vehicles:

“Our net income and cash flow results will be announced along with the rest of our financial performance when we announce Q4 earnings. Our 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. Final numbers could vary by up to 0.5% or more.”

Good Year for Tesla

In an annual meeting in January, Musk told Tesla’s shareholders that the company could reach 1 million deliveries, but retracted when the economic effects of COVID-19 took effect, adjusting the numbers to 477,750 – 514,500 deliveries. Despite the consequences of COVID-19 in the automobile industry, Tesla was able to achieve Elon Musk’s predictions of increasing the total deliveries by 30 – 40 % in 2020 with 99% success.

At first, the uncertainty regarding the company’s production was centered on the negative effects that the COVID-19 pandemic had on the automobile industry — as Tesla and other automakers had to close several factories due to the increase in infected workers.

However, thanks to the outstanding sale of the Tesla Model 3 cars and a greater demand for electronic vehicles, the company had an economic relief and a price increase in its shares, which are currently traded on the marketplace at $705.

Tesla is also expanding in Germany, building a new fabric in Berlin where the company expects to generate a total production of 500,000 vehicles annually. Similarly, Tesla will produce its first pickups in another new factory in Austin, Texas.

Similarly, the delivery of Y SUB models in China begins this month, with prices up to 339,000 yuan, or $ 59,000, close to some of their local rivals — like Nio, Xpeng, and Li Auto. China is currently Tesla’s biggest market. The production at Tesla Giga Shanghai met the popular demand with a record of more than 120,000 units sold in 2020.

China has a lower demand for electric cars compared to the west. But the Chinese market has become a testing ground full of opportunities for electronic automakers — as the country seeks to reduce the pollution generated by petrol and diesel cars.

Business News, News, Technology News, Transportation News

José Oramas

I’m a finance journalist and copywriter with a keen interest in the fintech field. I have keen on blockchain technology and cryptocurrency and I believe it can reshape the way we see money and financial freedom.

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