Tesla's stock went up 8.5 percent to $226 after reporting their third quarter earnings where it delivered more cars than expected.
Reuters reported that the car company will boost up the production of its electric cars after its Model X SUV saw a strong rollout, bringing its stock up 9 percent even as it reported its biggest loss in ten quarters. The company announced on Tuesday that orders for its luxury Model X and Model S sedans are growing at a fast pace. It estimated shipping up to 19,000 vehicles in the fourth quarter, which is an increase from third quarter's 11,603.
According to The Wall Street Journal, the car company projects up to 52,000 deliveries this year. This has eradicated the doubts from investors that the company may not meet its targets and boost production. Tesla produced 13,091 vehicles in the third quarter and delivered 11,603 units. That is an increase from the second quarter's 12,807 vehicles produced and 11,532 delivered units. It announced that it can deliver up to 1,800 vehicles every week in 2016.
San Jose Mercury News reported that Tesla CEO Elon Musk said, "Since the Model X launch event, order rates have accelerated for both Model S and Model X." He said this only adds to their confidence on how Model X expands the market for the company without overshadowing Model S. However, Tesla cautioned that it is still too early to conclude the consistency of the growing order trends. For the third quarter, the company lost $229.9 million from its $937 million revenue, making it the biggest loss in 10 quarters.
The company started delivering the premium version Model X Signature late September. The Model 3 is expected to be launched in March. This vehicle is specifically marketed for the masses with a $35,000 price. But it may still take a couple of years before the company will begin its production.
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