Tesla Shaping Up Well for Green Car Industry

Tesla experienced a record quarter for deliveries, showing the market for green vehicles in the United States is expanding.  Contrary to some reports, it seems that Tesla does not have demand issues- according to a former executive for Chrysler and Toyota.

Tesla shared jumped more than 7% in extended trading after announcing 95,200 vehicle deliveries in the second quarter.  The analyst expectation was 91,000.  The company delivered 63,000 in its first quarter, as the company had a number of production issues.  The lower number had analysts predicting that Tesla had a demand issue. Tesla was said to have had many unfilled orders outside of the United States.

Tesla CEO Elon Musk has been stressing to his investors that there is a healthy appetite for the vehicles, telling them “there is not a demand problem.”  The most popular model was the Model 3, which was responsible for 77,550 of the deliveries.  Analysts predicted that the Model 3 would have 74,100 deliveries.  Tesla has not provided a regional break down by location, but they do expect to see more competition from other manufacturers itching to gain favor in the green market.

Gene Munster, a venture capitalist and Tesla bull, said Tuesday that  the electric auto maker’s deliveries show it is taking a “powerful step forward” after being plagued by production issues and executive departures.

Munster said the company appears to be working through its manufacturing problems, and in fact may not have a manufacturing problem.