Tesla (NASDAQ: TSLA) is set to report its quarterly production and sales data this week, and some investors might not be impressed by what they see. According to industry insiders, Tesla sales will be down compared to the holiday quarter of 2018.
Investors should brace for disappointing numbers, but it’s important to keep the overall performance of the company in perspective. By all metrics, is far ahead of where it was this time last year.
Projected Tesla Sales Data
According to the consensus on Wall Street, the company will report sales and deliveries of the Model 3 at around 50,000 units. This is notably lower than the 63,000 units that the company reported in the holiday quarter.
The Model 3 is Tesla’s best-selling car, so any slowdown could worry shareholders and potential investors.
Sales and deliveries of the more expensive Model X (SUV) and Model S (Sedan) cars will likely be below 22,000.
In the holiday quarter of 2018, the company sold or delivered a total of 90,700 vehicles. Some of the most conservative analysts have warned that this quarter’s number could be closer to 70,000.
Is it Time to Change Your Outlook on Tesla?
For most automotive companies, this kind of quarterly sales decline would be terrible news. For Tesla, it’s not actually as bad as it looks.
The most important fact to remember is that in the first quarter of 2018, they only sold 30,000 vehicles in total. Even though numbers this quarter will not be as strong as the previous one, the year over year gain will still be impressive.
Last year’s plug-in vehicle federal tax credit of $7,500 is also being phased out, which could dampen Tesla’s numbers in the short term.
Tesla Stock Moving Forward
In the eyes of many analysts, Tesla is one of the most important stocks on the market today. Sales may disappoint this quarter, but the results can be explained. The key here is for Tesla to keep moving forward with its business strategy. The company will start producing an entry-level Model 3 later this year, which could help to reinvigorate sales before Christmas.
Tesla had one of the best-selling cars of 2018, with the Model 3 selling more than any other luxury car.
Tesla’s falling stock prices don’t reflect the potential of the company. Low prices could even be an opportunity for new investors who aren’t afraid of risk.
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