A record quarter for deliveries by Tesla is further proof that the market for green vehicles in the United States is expanding and that Tesla does not have demand issues, a former executive at Chrysler and Toyota told CNBC on Tuesday.
Tesla shares jumped more than 7% in extended trading after announcing 95,200 vehicle deliveries in the second quarter, topping expectations of 91,000, according to analysts surveyed by FactSet. The company delivered just 63,000 vehicles in its first quarter as the electric auto maker was plagued by production issues, but that disappointing number also led analysts to question whether Tesla had a demand issue.
“I think demand was there,” Jim Press, a longtime auto executive who was president of Chrysler and Toyota. said on “Closing Bell. ” “I think a lot of this quarter was really done by stoking up production. They had a lot of unfilled orders, especially outside the United States.”
Tesla CEO Elon Musk has been stressing to investors that there is a healthy appetite for Tesla vehicles, saying at a shareholders’ meeting last month, “I want to be clear: There is not a demand problem.”
The company’s biggest seller was the Model 3, which saw 77,550 deliveries. This also beat expectations, as analysts surveyed by FactSet had an estimate of 74,100.
The electric vehicle company did not release a regional breakdown of its second-quarter deliveries, but Press said the electric vehicle market is growing.
“If you look at Tesla’s production, half of their sales up to the beginning of this year have been in the state of California,” Press said. “A lot of this growth now for them has been outside of California, and that shows that demand is growing for green vehicles throughout the country, and actually in other markets as well outside the United States.”
Press said he expects to see more competition from major manufacturers for Tesla in the green car market in the coming quarters.
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.
“Something bigger is going on here,” the former longtime tech analyst and founder of Loup Ventures said on CNBC’s “Fast Money. ” “Electric cars are undoubtedly the future here.”
