Tesla, Inc. TSLA has delivered 49,000 vehicles in North America so far in second-quarter 2019, per Reuters. According to Electrek, this is below the electric vehicle (EV) giant’s expectation and is likely to affect its goal of creating a record for new vehicle delivery in the quarter.
In first-quarter 2019, Tesla’s vehicle production and delivery numbers witnessed sequential declines of 10.9% and 31%, respectively. In the same quarter, it managed to produce roughly 77,100 vehicles — consisting of 62,950 Model 3, and 14,150 Model S and X. Out of the total delivered figure of 63,000 units, the company’s Model 3 accounted for 50,900 while Model S and X were 12,100. This raised concerns about its ability to make profits and meet its delivery targets while encountering issues pertaining to cash flow and manufacturing.
However, Tesla’s chief executive officer, Elon Musk, stated that the company has enough orders to set a record for vehicle deliveries in the second quarter. In a leaked email, he has added that there is no scarcity of orders but right vehicles are not all in right locations yet.
Zacks Rank & Stocks to Consider
Tesla currently carries a Zacks Rank #5 (Strong Sell).
A few better-ranked stocks in the auto space are Ford Motor Company F, Fox Factory Holding Corp. FOXF and Cummins Inc. CMI, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ford has an expected long-term growth rate of 7.3%. Over the past six months, shares of the company have gained 26.9%.
Fox Factory has an expected long-term growth rate of 16.4%. Over the past six months, shares of the company have gained 33.2%.
Cummins has an expected long-term growth rate of 8%. Over the past six months, shares of the company have gained 28.3%.
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