Tesla has grown to become one of the best carmakers around the world, with its electric vehicles sales once again spiking. The company had seen a lot of success when it comes to deliveries of its three models — S, 3, and X. Model 3 has been particularly successful, and the firm has hit record sales. The other two models are also seeing recovery after experiencing a major drop in sales.
However, things are still not as well as they could be, and the firm has a long way to go in order to see profits. Even so, the company seems to be getting back on track, at least according to Yahoo Finance. All three models have seen a massive surge in sales, and the company is capable of delivering.
As mentioned, Tesla Model 3 has seen the biggest spike up, with around 320% growth in sales, when compared to Q2 2018. Back then, Tesla went through a series of setbacks which slowed down its production process and impacted the company’s efficiency. In fact, the firm was nearly half a year late with some of its deliveries. In months that followed, the company managed to recover, and sales are once again on the rise.
As for Models S and X, their growth is not as high as that of Model 3, but they too saw a major increase when compared to past quarters. Both models have been down in the previous year, which changed with the arrival of 2019. As mentioned, they did not surge as much as Model 3, but a 46% growth is not to be ignored.
Tesla’s less-than-great performance earned a lot of negativity from the press, but despite that, its CEO, Elon Musk, claimed that the firm is on the road to break past records. According to new information, he was right, and the new development is certainly going to help with the company’s bottom line.
Tesla needs to sell more of its pricier models
Of course, the situation is still not nearly as good as it could be. The Model 3 sales have surged the most, but this is the company’s cheapest vehicle. Models X and S are the ones that are expected to bring the real profit, but their sales have grown only a bit, compared to Model 3. Even so, the fact that the cheaper model is doing extremely well is seen as a good sign.
Especially now, when Model Y is about to arrive. The new model will be a crossover SUV, and it will come with a great many features, as well as at greater affordability. It is clear that the company hopes to use it for attracting a wider audience, and make decent earnings along the way. It will certainly help its financial recovery in the long run, provided that the increase in interest continues.
As for here and now, the firm still has a debt to deal with, and it has a long way before it once again reaches financial profitability. They recently managed to obtain a tariff exemption, which will certainly help with lowering the cost of production. As a result, the company will be able to spend less on creating new cars, and hopefully pay off its debt in the near future. This is crucial in order to avoid the bankruptcy that Musk has foreseen, expecting it to hit in the next 10 years, should the situation not change for the better.