On January 5, electric car maker Tesla announced it had delivered 112,000 vehicles in the fourth quarter. As such, the Fremont, California-based manufacturer topped its previous record of 97,000 cars shipped. Because of Tesla’s remarkable Q4 performance, investors pushed the firm’s market capitalization up to $80 billion.
Why Tesla Had Such a Strong Fourth Quarter
In the fourth quarter of the year, Tesla delivered 92,550 Model 3s and 19,450 Model X and S vehicles to consumers. Therefore, the corporation succeeded in moving 367,500 automobiles in 2019, thus fulfilling CEO Elon Musk’s pledge of distributing at least 360,000 cars.
Bloomberg reports the manufacturer’s recent sales likely benefited from changes in global tax regulations.
In the U.S., car buyers had until January 1 to take advantage of a $1,875 electric vehicle tax credit. American consumers reportedly flocked to Tesla’s California Gigafactory to take receipt of their vehicles before the year ended. Similarly, in the Netherlands, purchasers have the opportunity to lock in a four percent tax rate on their Teslas car payments until December 31. The publication noted the Dutch people found that incentive enticing as they registered 12,062 new Model 3s last month.
Furthermore, Tesla took steps to broaden the appeal of its electric sedans and crossovers in 2019. In the second half of the year, the firm tempted buyers with smart valet functionality, Netflix, and an array of whimsical horn sound options. The corporation also worked to resolve the manufacturing and delivery problems that plagued it at the start of last year.
Tesla’s Future Outlook
Although the electric car maker finished strong in 2019, Tesla’s future outlook is even better.
Most prominently, the manufacturer opened its first overseas production facility in Shanghai last December. In addition, the company secured a 10 percent purchase tax credit and a $3,600 subsidy for the Chinese government.
Furthermore, Tesla’s Chinese Gigafactory can assemble 3,000 vehicles per week, so the firm is ready to meet the demand it’s cultivating.
The corporation has also made plans to expand into Europe’s electric automobile market. The carmaker is spending $4.43 billion to open a production facility just outside of Berlin. Last year, German consumers purchased 57,353 battery-powered transports. With an output of 500,000 vehicles per year, Gigafactory 4 will be able to meet local demand.
It’s also worth noting that the firm intends to expand its European supercharger network this year significantly. Consequently, the region’s consumers will be able to buy new Teslas without having to worry about finding a place to recharge.
In addition, Tesla will be expanding its offerings in the near future. This autumn, the manufacturer intends to release three different iterations of its Model Y SUV. As its standard edition is priced at $39,000 and can go 280 miles per charge, it could resonate with American motorists in a major way. Indeed, U.S. consumers have shown a strong recent affinity for the performance and utility offered by SUVs.
Tesla also looks to do well in the light pickup market with its Cybertruck. Available in 2021, the $49,000 standard edition of the vehicle gets 300 miles per charge and can tow 10,000 pounds. Despite an unusual design, the carmaker received more than 250,000 preorders for its cyberpunk-esque transport.
With its enhanced production capability and expanded offerings, Tesla is on pace to continue shattering records throughout the decade.