Tesla has concluded yet another quarter, and signs are emerging that the electric car maker has attained new records in terms of production and deliveries once more. This was highlighted in data from two foreign regions, China and the Netherlands, where Tesla reportedly saw a rise in deliveries in Q3 2019.
China’s Tesla sales are generally difficult to track unless one waits for local reports, but Piper Jaffray analyst Alexander Potter wrote in a recent note that the electric car maker might have experienced triple-digit growth in the third quarter. Potter came up with his inference by looking into the country’s insurance data.
“Tesla’s deliveries to real, actual people are still rising at a triple-digit pace, despite being hamstrung by import duties, a flagging auto market, and a historical inability to tap EV subsidies,” the analyst wrote.
Potter’s research estimated that Tesla’s third-quarter deliveries in China will likely be up more than 175% compared to the same period last year. The Piper Jaffray analyst expects Model 3 deliveries to comprise the majority of Tesla’s sales in China, while the larger, more expensive Model S and X would likely show a decline of about 25% year-over-year.
Yet, despite the drop in the sales of its flagship models, Potter stated that he remains optimistic about Tesla’s chances in China, which will likely be boosted with the activation of Gigafactory 3 in Shanghai. Gigafactory 3 is expected to start trial Model 3 production runs by the end of the year.
“Tesla’s Shanghai facility should be operational in the next few months/quarters, and once it opens, margins should rise. Even in a market like China, where EV models are commonplace … Teslas are among the only electric vehicles (EVs) that consumers actually want to buy,” he said.
And it is not just China, either. According to data from electric vehicle sales tracker eu-evs.com, Tesla was able to deliver 7,000 units of the Model 3 in the Netherlands over the past three months. This bodes well for the electric car maker, as the country, together with Norway, stands as one of Tesla’s strongest markets in Europe.
Reports from the Netherlands in September revealed that the country had already delivered more than 10,000 Model 3 in 2019 so far, with over 2,200 of that number being delivered in the first half of the month. This number appears to have doubled in the second half of September, with Tesla delivering around 7,200 Model 3 during Q3 2019. If Tesla follows this pace, the Model 3’s numbers in the Netherlands might be even more impressive in the fourth quarter.
Tesla hit new delivery and production records in the second quarter, with 95,200 vehicles handed over to customers from April to June. Yet, despite these numbers, the company was not able to post a profit, resulting in more headwinds for TSLA stock. Expectations for the third quarter are even more ambitious, with a leaked email from Elon Musk suggesting that the company had a shot at reaching 100,000 deliveries for Q3 2019.