Tesla Model 3 sales soar

Tesla achieved record EV deliveries and production to end the 2019 second quarter with US$5 billion in cash and cash equivalents on the eve of launching its RHD Model 3 in Australia and New Zealand.

Recent reports suggest at least four Model 3s are in Sydney and three are in Auckland for media drives before customers start receiving theirs in September.

Total Model 3 sales for the second quarter were 77,634.

“Not only was Model 3 once again the best-selling premium vehicle in the US, outselling all of its gas-powered equivalents combined, this product also gained traction in other markets,” Tesla says.

“In Europe, Model 3 is approaching sales levels of established premium competitors.”

Tesla says it achieved record deliveries of 95,356 vehicles and record production of 87,048 vehicles in the quarter, surpassing previous quarterly records.

“As a result of this growth and operational improvements, we generated US$614 million of free cash flow (operating cash flow less capex) in Q2. Combined with our public offering of equity and convertible bonds (net proceeds of US$2.4 billion), we ended the quarter with US$5.0 billion of cash and cash equivalents, the highest level in Tesla’s history.

“This level of liquidity puts us in a comfortable position as we prepare to launch Model 3 production in China and Model Y production in the US.

“As a result of our strong deliveries and continued progress on cost efficiencies, our GAAP net loss (US$408m) declined significantly compared to Q1.”

Tesla says it’s on track to launch Gigafactory Shanghai by the end of 2019 and its Model Y by late 2020.