Wednesday 3 July 2019 5:37 pm

Tesla shares rally as firm makes record number of deliveries

Tesla shares rallied today after the tech company announced it delivered a record number of electric cars in the second quarter. 

Elon Musk’s firm delivered 95,200 cars in the period, sending shares up 6.4 per cent to $238.92, the highest price in almost two months. 

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Analysts had raised concerns that demand for the cars had slumped and over the company’s ability to fix recent delivery issues. In the first quarter deliveries fell by 31 per cent. 

Hargreaves Lansdown equity analyst Nicholas Hyett said: “After a disappointing first quarter these are reassuringly strong numbers from Tesla, with deliveries coming in well ahead of what analysts had expected. 

“The numbers suggest Model 3 demand is growing nicely, although we’ll have to wait for the half year financials to see if increased efficiency from volume growth has offset the negative impact of price cuts on margins.

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“These are undeniably strong numbers, but given Tesla’s recent history of significant swings in performance from quarter-to-quarter we remain cautious for now.”

“If it continues to generate output at this rate it could well get a lot closer to its annual target of 400k deliveries in a fiscal year, than was originally thought back in April,” CMC Markets analyst Michael Hewson added.