Tesla Factory Check: Q3 Deliveries Likely To Meet Guidance

Trip Chowdhry of Global Equities Research conducted checks on Tesla Motors Inc (NASDAQ: TSLA)'s Tesla Factory on September 23.

Factory Checks

Following the checks, Chowdhry expects the company to be able to meet is H2:2016 delivery guidance 50,000 vehicle units.

The analyst mentioned that truck delivery activity had significantly picked up from the previous check on August 30, which Model S and Model X production also seem to have meaningfully ramped.

“Our research indicates that TSLA may deliver more than 22,000 Auto Units in 3Q'2016 up from 14,402 Units that TSLA delivered in 2Q'2016,” Chowdhry stated.

Production Targets

Tesla Motors indicated that it targets exiting Q3:2016 with a stable production rate of 2,200 units per week, while increasing production to 2,400 units per week in Q4.

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“Deliveries have significantly increased, which very likely indicates that TSLA may have achieved its production plans of 2,200 units per week in 3Q'2016,” the analyst went on to say, while adding, “This is the first time we are seeing 3 rows of Tesla cars, each more than 100 cars long [...] lined up to be loaded on the Delivery truck.”

Chowdhry also pointed out that this was the first time one complete row of Model X units were being prepped to be loaded onto a delivery truck.

The checks indicate that 40 percent of the vehicles delivered during Q3:2016 would be Model X units.

In Monday's pre-market, Tesla was down 0.45 percent at $206.52.

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