Tesla Inc (NASDAQ:TSLA) shares were ready to break out Wednesday after the company released its Q2 vehicle production and delivery numbers.
The electric-car company delivered 95,200 vehicles in the second quarter, better than analysts expected. The company said it's entering the third quarter with an increase in order backlog.
The company, based in Palo Alto, Calif., achieved record production of 87,048 vehicles. In addition, TSLA made significant progress streamlining its global logistics and delivery operations at higher volumes, enabling cost efficiencies and improvements to its working capital position.
Customer vehicles in transit at the end of the quarter were over 7,400. Due to the order-to-VIN matching process described in TSLA’s Q1 2019 Shareholder Letter, which it extended to Model S and Model X in Q2 to improve process efficiency, this metric has become less relevant. As a result, Tesla does not plan to disclose the customer vehicles in transit metric going forward.
The company’s net income and cash flow results will be announced along with the rest of its financial performance when we announce Q2 earnings. The delivery count should be viewed as slightly conservative, as TSLA only counts a car as delivered if it is transferred to the customer and all paperwork is correct.
Tesla vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors.
Shares popped $12.40, or 5.5%, to $236.97
