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Published: Sat, April 08, 2017
Economy | By Melissa Porter

Tesla's having a great year so far

Tesla's having a great year so far

This represents a huge 69-percent year-on-year increase over the deliveries it made in the first quarter of 2016.

The chart below illustrates Tesla Motors, Inc. stock movement after posting an upbeat figure for the first quarter.

That would be considerably more affordable than Tesla's present models - the Model X, an SUV, and the Model S, a stylish saloon, both priced over $70,000.

In the quarter, Tesla delivered around 25,000 vehicles. Analysts predicted the company to deliver vehicles between 23,000 and 24,000 in the March quarter. "We continue to believe [Tesla's stock] can make new highs in 2017 with the continued execution towards Model 3 production ramp". At the event Elon Musk claims that the auto will deliver at least 215 miles or 346 km of range.

Tesla is undoubtedly moving at a brisk space and is proving to be a threat for established automakers. The company has about 400,000 people in the waiting list for the model indicating the kind of challenge. It also specialises in battery storage.

Tesla will begin building the Model 3 in July.

Of the projected 500,000 cars produced per year, it is expected that half of these will be Model 3 vehicles.

The company is already promoting Model S ahead of Model 3 as it announced April 15 as the last date to order the Model S 60 and 60D after which they will be discontinued. He has an Underperform rating on Tesla going into the weekend. However, last week, China's Tencent Holdings acquired a 5% stake in Tesla amounting to $1.78 billion, creating significant cash flow for the company.

With the Model 3 launch on the horizon, Tesla's business has never been stronger. While the United States is still the biggest market for the company with sales of $4.2 billion previous year, the $1.1 billion in sales from China is triple the $318 million from 2015, representing massive growth and a big opportunity for Tesla.

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