Tesla EV deliveries soared in 2019 as tax breaks expired in Q4

Houston — Tesla, the manufacturer of three electric vehicle models, said it delivered 367,500 electric vehicles in 2019, a 50% increase over 2018 deliveries.

The California-based company also said its production and delivery of vehicles in 2019's fourth quarter set records.

The fourth-quarter deliveries of 112,000 vehicles, however, were in large part boosted by the expiration as of December 31 of a $7,500 tax credit that was not extended by Congress in mid-December, according to analysts.

"With their federal tax credit expiring at the start of 2020, Tesla delivered nearly 8,000 vehicles more than they produced in Q4 2019, drawing down inventory and increasing cash flow," noted Zane McDonald, an EV analyst at S&P Global Platts Analytics.

Furthermore, as part of its global expansion, Tesla's fourth Gigafactory, and the first in Europe, began the official approval process Monday in Germany.

"The new factory will help Tesla capitalize on demand for low-emissions vehicles derived from the EU's stringent auto emissions standards, a policy that could cost the highest emitters hundreds of millions of euros in 2020-2021 compliance fines," McDonald said Wednesday.

Tesla said it "continues to focus" on expanding production in the US as well as at its newly launched facility in Shanghai, China, and that it broke ground on its Gigafactory Shanghai battery production facility "less than 12 months ago."

The company said its "delivery count" is "slightly conservative" because it only counts a vehicle as delivered if it is transferred to the customer "and all paperwork is correct."

It said final numbers could vary "by up to 0.5% or more."

According to Tesla, in Q4 it produced 86,958 Model 3 vehicles and delivered 92,550. The company reported that it produced 17,933 Model S and X vehicles and delivered 19,450.

In total for the quarter, Tesla produced 104,891 of the three vehicle types and delivered 112,000.