The following is an excerpt from Dana Hull | January 3, 2016 | Bloomberg.com |
Billionaire Elon Musk’s Tesla Motors Inc. hit the low end of its latest target to deliver at least 50,000 vehicles for the year, shipping 17,400 in the fourth quarter.
The maker of electric cars and energy storage devices delivered 50,580 Model S sedans and Model X sport utility vehicles in 2015, Tesla said in a statement Sunday. While that’s less than the 55,000 Tesla had projected in a February letter to shareholders, it was within the range of its revised estimate of 50,000 to 52,000 from November.
Tesla’s guidance changed during the year as it grappled with manufacturing more than one vehicle and a steep production ramp. It’s producing the two all-electric vehicles on a shared assembly line in Fremont, California. Musk, the chief executive officer, turned over the first six Model X SUVs to owners at a high profile event on Sept. 29, and the deliveries accelerated over the holidays. It shipped 208 Model Xs in the quarter and produced 507.
“It’s good news,” Ben Kallo, an analyst with Robert W. Baird who rates the shares as “neutral,” said in an interview Sunday. “They hit within their guidance. The X number is lower than some expectations, but production has picked up nicely.”
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