Tesla Delivered Over 90,500 Cars In Q2, Defying Expectations

Marco Green
July 6, 2020

What makes the automaker's second-quarter result particularly impressive is the fact that Q2 sales at Ford, GM, and FCA all dropped by 30 percent or more in the second quarter.

Prior to Tesla's supply report, Ives upped his selling price concentrate on on the inventory to $1,250 from $1,000, even though maintaining a neutral score.

The sales figures came one day after Tesla's market capitalization surpassed Toyota to become the world's most valuable auto company.

'But that also means price gains will be crucial in enticing investors into the volatile market, for any price increase that is clearly unjustified - if not, speculative - will scare away those looking for a healthy balance sheet and potential consistent returns, especially if liquidity woes return to the financial markets, ' says Safieddine.

Tesla sent 80,050 Model 3 and Design Y automobiles combined in the time period, as well as 10,600 Product S and Model X motor vehicles in aggregate.

Tesla's stock has continued to climb due to healthy sales for its pricier Model S and X automobiles in addition to the extra low-priced three and Y fashions.

Unsurprisingly, shares of Tesla took off almost 9% to $1,219.02 in Thursday's premarket trading.

Tesla's quarterly deliveries "are additional evidence that Tesla has the vehicle business backed into a corner", Gene Munster of Loup Ventures, a former Wall Street analyst turned undertaking capitalist, mentioned in a note.

Tesla said Thursday that it delivered 90,650 vehicles in the second quarter, a 3.7% decline from the same period a year ago prompted by challenges caused by the COVID-19 pandemic that included suspending production for weeks at its main USA factory. The Shanghai plant was only briefly impacted by coronavirus shutdowns in late January and early February.

Additionally, it is still committed to increasing production capacity for Model Y at Gigafactory Berlin and Gigafactory Shanghai, with deliveries on track to start in 2021.

Tesla shut down its Fremont, Calif. factory for about six weeks of the quarter to comply with rules set to stop the spread of COVID-19. The newer Y small SUV and Model 3 smaller auto accounted for the bulk of the sales at 80,050.

Other major automakers posted lower USA monthly or quarterly new vehicle sales on Wednesday due in large part to weak fleet orders, but said consumer demand remained robust despite the continuing coronavirus pandemic.

Other reports by Click Lancashire

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