Has Tesla Hit The 200K Vehicle Delivery Threshold?

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About: Tesla, Inc. (TSLA)
by: John Engle
This article is exclusive for subscribers.
John Engle
Value, special situations, Deep Value, Growth
Summary

On July 1, Tesla reported delivery numbers for Q2 2018. While deliveries came in below estimates, InsideEVs reports that Tesla may have delivered its 200,000th EV in June.

If InsideEVs is correct, then the clock for the phase-out of the $7,500 consumer tax credit has started.

It appeared as if Tesla would attempt to hold back its 200,000th US delivery by stocking up inventory and making deliveries to Canada or further afield.

If Tesla crossed the delivery threshold in June, then it may have lost out on the equivalent of $366 million-worth of tax credits.

With tax credits phasing out, consumer demand may soften; reservation holders waiting for the long-promised $35,000 Model 3 sedan may abandon hope.

In mid-June, we published a research note discussing, among other things, KeyBanc’s projection that Tesla (TSLA) would deliver 30,000 Model 3 sedans in Q2 2018, significantly higher than the market consensus. In the