On Tuesday Tesla Inc.’s (NASDAQ:TSLA) stock soared in European trading after the company reported record deliveries in the quarter. This alleviates demand concerns that the company has been grappling with over the past. The company reported record 97,000 car deliveries globally in Q3 slightly missing analysts’ estimates of 99,000.
Tesla’s record deliveries in the UK boosted by demand of Model 3 cars
The company reported record deliveries in the UK boosted by Model 3 car deliveries. The car is already becoming a household name and third-bestselling vehicle in the UK market. Besides the Model 3, the Model S and Model X car sales have also been growing steadily over the past. According to registration data, the vehicle delivery units peaked two years ago when Tesla recorded 4,756 units.
In 2018 the electric car maker delivered around 3,372 cars in the UK which was adequate making it the company’s third-largest market in the EU. The company launched the Model 3 cars in the UK market in May and commenced the delivery of the cars in June. It appears like Tesla has overcome demand concerns after experiencing slow ramp-up in the first few months. In August the company delivered over 2,000 Model 3 cars which were enough to boost its deliveries in the UK.
Registration data for September shows that Tesla delivered over 3,459 vehicle units with Model 3 cars being around 2,864. This boosted the electric car market leading to an increase of 2.2% in the overall vehicle market in the UK. In total Tesla delivered 6,244 cars in the quarter out of which 5,385 vehicles were Model 3 cars. The company made more deliveries in the quarter than it had made the whole of last year.
Electric car incentives driving demand in the UK
The company sells the Model 3 car at £39,000 this is after the £3,500 UK electric car grant. Tesla has also managed to establish in the UK market after delivering the right-hand-drive version of the car. There was a limited supply of right-hand-drive Model 3 cars and the company expected to capitalize on that and enhance their deliveries in the UK market with more production allocation.
The price of the Model 3 car is reasonable and it comes with a plug-in grant. There are more incentives if you can register the car as a company car you will not pay the benefit-in-kind tax. More people are capitalizing on the incentive leading to a surge in demand. Tesla will deliver more cars in the fourth quarter.