Business

Elon Musk predicts Tesla could barely set quarterly vehicle delivery record

'But it will be very close'

Bloomberg

Tesla CEO Elon Musk speaks in 2018 in Los Angeles.
Bloomberg Tesla CEO Elon Musk speaks in 2018 in Los Angeles.

Tesla could be on the verge of a quarterly record for vehicle deliveries, though the electric carmaker will need to go “all out” in the last few days of the month, CEO Elon Musk wrote in an internal memo.

“There is a lot of speculation regarding our vehicle deliveries this quarter,” Musk told employees in an email Tuesday. “The reality is that we are on track to set an all-time record, but it will be very close. However, if we go all out, we can definitely do it!”

Tesla has slumped 34 percent this year, in part due to concern about demand that Musk has repeatedly downplayed.

The company has forecast it will deliver 90,000 to 100,000 cars in the second quarter after handing over just 63,000 vehicles to customers in the first three months of the year.

A Tesla representative didn’t immediately respond to a request for comment.

The company’s previous best for quarterly deliveries was 90,700 vehicles in the last three months of 2018.

“We already have enough vehicle orders to set a record, but the right cars are not yet all in the right locations,” Musk wrote.

“Logistics and final delivery are extremely important, as well as finding demand for vehicle variants that are available locally, but can’t reach people who ordered that variant before the end of the quarter.”

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Analysts’ average price target for Tesla shares has slumped to $269.39, from $342.84, at the beginning of this year, according to data compiled by Bloomberg. Sixteen analysts recommend selling the stock, compared with eight holds and 12 buys.

Some of Tesla’s skeptics, including Goldman Sachs’ David Tamberrino, are cautioning that while deliveries may beat the low end of the company’s guidance for the second quarter, the strong showing may not be sustainable.

The U.S. federal tax credit that Tesla’s Model 3, Model S and Model X will be eligible for shrinks to $1,875 as of July 1, from $3,750.

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