Tesla, which delivered a record 112,000 vehicles in the final three months of 2019, rose more than 5 percent to a record high of $453.53. According to the company’s quarterly report, the electric car maker handed over 92,550 Model 3 and 19,450 Model S and Model X electric vehicles in the fourth quarter, a record of 97,000 in the previous three months.
Tesla delivered 367,500 vehicles in all of 2019, exceeding the forecast limit of 360,000.
Elon Musk, the company’s chief executive, reported a surprise quarterly profit at the end of October. To maintain momentum, Tesla will have to overcome the federal government’s decision to stop providing tax credits for its cars and less generous support from the Dutch government. The Dutch tax incentives generate huge demand, but they expire at the end of the year.
Tesla shares rose 2.4 percent to $440.50 before Friday’s U.S. session. The stock is up 26% in 2019.
International delivery of the Model 3 sedan began in early 2019 and became an important source of sales during the year. Although Tesla did not release delivery details by region or country, the company reported in October that third-quarter U.S. revenue fell nearly 40 percent from a year earlier. Growth in other regions offset the decline.
In December alone, 12,062 Model 3s were registered in the Netherlands, according to Kentekenradar, which publishes updates on the Dutch Daily Fleet data. That’s more than double the best month of sales.
Tesla has said China could become model 3’s biggest market. Model 3 is currently being assembled at a factory near Shanghai. On December 30th the company delivered its first home-made Model 3 to 15 employees.
The company said it had assembled nearly 1,000 vehicles and said it produced more than 3,000 vehicles per week.
As Tesla’s production in China continues to grow, a key question will be whether the company can generate enough demand in China to offset the seasonal downturn that all automakers experience in the first few months of each year. Tesla’s disappointing delivery in the first three months of last year sent its share price down, which did not recover until most of 2019.
Analysts on Wall Street are divided over the carmaker’s next delivery. On Thursday, Canaccord Genuity raised its price target by more than $100 to $515. The company told customers that the shift in demand for electric vehicles would only accelerate this year. Wall Street’s forecast for this year was “surprisingly low”, JPMorgan Said.
Others are less certain. Cowen and Co. Recently, caution has been expressed about the “saturation of demand” in most mature markets. Analyst Jeffrey Osborne expects Model 3 deliveries to fall month-on-month in the fourth quarter and from a year earlier, excluding the Netherlands and China.
The average Target price for Tesla is $301.83, according to the data. Eleven analysts recommended buying, 10 holdings and 15 selling.