Tesla Keeps Up With Deliveries, Still Far From Financial Recovery

Tesla sales have spiked with the recent successes in Model 3, S and X deliveries. The Model 3 has hit record sales, while the Model S and X have recovered from a sales slump. But even so, the company still needs to do more to reach financial profitability.

Tesla has been doing well in sales for the Model 3, S and X, according to Yahoo Finance. Most of the sales came from the boom in Tesla deliveries for all three models.

The Model 3’s sales went up by 320 percent compared to its second quarter sales last year, according to company data shown on MotleyFool’s report. During the company’s second quarter last 2018, the company was experiencing setbacks, which put its production behind schedule for almost half a year. However, Tesla has since recovered from this, and the Model 3 has been a popular pick for consumers for Tesla’s second quarter of 2019.

Meanwhile, the Tesla Model S and Model X units have also done well during this quarter. Similar to the Model 3, both Model S and X deliveries have been down in previous years and just increased to 46 percent more for this year. At best, Tesla CEO Elon Musk wasn’t lying when he said that that the company is actually breaking its records for this quarter despite the negative press about their performance lately.

While all the improvements will help Tesla’s bottomline, most of their sales are still of Model 3 units rather than Model S and Model X. The company has sold more of their cheaper vehicles than the Model S and Model X, which are supposed to bring more money to the company.

But with the cheaper Tesla vehicles doing well, this may be a good sign for the upcoming Model Y crossover SUV. The electric crossover SUV is set to be marketed as more accessible model with great features and affordability. Tesla hopes that this approach will help it reach a wider audience and earn more money in the long run.

For now, the company has yet to become free of debt and obtain financial profitability. The company recently succeeded in obtaining a tariff exemption, which helps lower production costs. Tesla needs every penny it can save to avoid the impending bankruptcy its CEO foresees in 10 years' time.