"We have a shot at achieving our first 100,000 vehicle delivery quarter, which is an incredibly exciting milestone for our company!"
The company's stock tumbled by more than 3% in after-hours trading on the news Wednesday. Of those 79,837 were Model 3s.
The news of regulatory scrutiny emerged on the same day as Tesla reported record-high net orders and deliveries in 2019's third quarter. The factory is expected to begin production before the end of 2019, which could help Tesla meet its goal to deliver at least 360,000 vehicles for the year. Specifically, it will be investigating whether the company should have recalled roughly 2,000 of its electric cars instead of pushing through a software fix for a problem said to potentially cause battery fires.
The petition says 2012-2019 model year vehicles were affected by the upgrade that Tesla knew would have a negative impact on the vehicle's battery range as well as increase the possibility of a fire. The shares in Tesla deliveries do not differ that much because the company shipped 79,600 of the Model 3, and that it accounts for over 82 percent of the quarter's records.More news: Sri Lanka beat Pakistan to seal T20 series
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Total deliveries came in at 97,000 units for the quarter, below analysts' estimates of 97,477 vehicles, according to IBES data from Refinitiv. In that period, the automaker was able to build a record number of cars in 87,000, and deliver a record number as well, in 95,200. The credit will completely phased out for Tesla in the first quarter of 2020. That credit, which could be applied toward the sales price of an electric vehicle, was previously worth $7,500 but was cut in half after Tesla hit 200,000 in total sales and is slated to soon be reduced to $1,875.
Tesla has long struggled to hit CEO Elon Musk's aggressive production and sales targets. Unfortunately, a new report from Reuters suggests the company may have even more safety-related complaints to deal with now.
The third-quarter sales numbers announced on Wednesday fell below the average estimate of 99,000 vehicles among analysts polled by FactSet.
US regulators said on Friday they were reviewing whether Tesla Inc should have recalled 2,000 of its electric cars in May instead of issuing a software upgrade to fix a potential defect that could have resulted in battery fires, reports Trend referring to Reuters. The company said it was focussing less on profit and more on volume growth, capacity expansion and cash generation.