Tesla's stock sharply higher Monday after the car maker announced record production and delivery of its electric vehicles over the weekend. The company delivering about 24,500 Model S and Model 's in the third quarter, up more than 70% from Q2. And it expects the next quarter will be the same or even slightly higher.
Questions of whether it can meet production targets have dogged the company. The news sending the stock up over four percent, while the overall market declined. But Tesla's not out of the woods just yet says Reuters auto reporter, Paul Lienert.>> Tesla's good news on third quarter production and deliveries almost raises more questions than it answered.
One big question is what impact are these deliveries gonna have on the company's third quarter earnings, which will be released in a few weeks? A bigger question than that is the company's ability to to fund its ongoing operations, including capital expenditures, on the new Model 3 that's slated to go to production next year.
>> The Model 3 is Tesla's cheaper model, which drew more that 300,000 pre-orders after it was unveiled. Tesla is finishing construction of a massive battery factory in Nevada called the Gigafactory, needed to ramp up production for its first mass market car. Tesla's strong third quarter delivery numbers come as major automakers report lower September US sales Monday.
The top six US market leaders show a 0.6% drop in deliveries from the same period a year ago. Before Monday's surge, Tesla's stock dropped 23% from early April.