Tesla Motors is regaining ground after bolstered sales in Q1 of 2015

Tesla Motors is regaining ground after bolstered sales in Q1 of 2015

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Tesla Motors Inc (TSLA), a renowned car maker, is making changes to regain ground. This is indicated by sales of Tesla’s vehicles, which conquer the 10,000 mark in the first quarter of 2015. That’s a latest sign Chief Executive Elon Musk is meeting his high sales growth target.

Sales in the first quarter of 2015 surpass Tesla’s initial estimates by an amount of 500 vehicles, accompanying a 55% rise in the Q1 of 2015, compared to the Q1 of 2014. The hiked sales indicate that Tesla Motors could easily overcome the mark of 31,655 Model S sedans sold in 2014.

Mr. Musk aims to deliver 55,000 vehicles in 2015 and 500,000 vehicles after 2020. If Tesla would achieve that mark, then it will be among the line of top car enterprises.

To achieve this mark, Tesla Motors should present its new model, Model X sport utility vehicles, with such innovation that it appeals to the audience. The Model X comes in the second half of 2015. Up till now, Mr. Musk has struggled to meet the predictions and introduce automobiles that that meet initial timing or pricing expectations, so it is a test for Tesla’s Model X launch if it will drive Tesla from niche to mainstream.

Tesla Motors normally discloses its sales results at the end of the quarter, bucking an industry trend of monthly basis sales reports. This kind of cloistered approach has led to a wild variance among analysts regarding the company’s sales and profits estimation. To avoid this kind of confusion, the company will declare its sales reports within three days after the quarter ends.

As part of strengthening its position in the U.S in the presence of low gas prices environment, the auto maker has introduced such leasing procedures that attracted consumers, but face difficulties stepping into new markets.

Tesla Motors growth is stable, but doesn’t meet the rate at which many of the Silicon Valley tech firms are growing with equal growth targets. In 2014, Tesla sold 31,655 vehicles and on quarterly basis it sold 6,457 vehicles in the first quarter; 7,579 in the second; 7,785 in the third; and 9,834 during the final three months.

They said they would do 40% of the full year in the first half, so that means they have to do 22,000 vehicles (in the first half). So they need to do 12,000 in the second quarter…they need to accelerate a bit.

There has been noticeable improvement in Tesla’s Europe sales due to the launch of all-wheel-drive models by Tesla. Also, for regaining ground in China, Tesla has launched this model in China with improved features like improved navigation system and adding more charging.

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