Tesla’s Q2 deliveries send its stock over $1,200

Marco Green
July 6, 2020

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.

In Q1 2020, Tesla had delivered 88,400 vehicles, while in Q4 2019, it shipped 112,000 vehicles.

Tesla, in comparison, ended 2019 with $24.6bn in revenues, having delivered just 367,200 vehicles past year.

For roughly two months, Tesla was forced to close its factory in Fremont, California to control the spread of the coronavirus.

While deliveries were down nearly 5% from a year ago, that's a strong showing relative to the declines other automakers sustained due to the global pandemic that decimated vehicle demand in key markets. The newer Y small SUV and Model 3 smaller vehicle accounted for the bulk of the sales at 80,050.

It came with a feverish push to crank out and sell more vehicles in the USA, and it gives the company a shot at breaking even when second-quarter financial results are released.

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. Many Model Y buyers reported rejecting their SUVs due to mismatched paint and body panels that didn't fit properly.

But many other Wall Street analysts are skeptical of Tesla.

Employees also say that Tesla CEO Elon Musk covered up an outbreak at the plant.

Musk's playing with fire here, though his gross joke is probably less risky than the "taking Tesla private" tweet, which significantly affected Tesla's stock price.

In the first quarter, the company eked out a US$16 million net profit, its third-straight profitable quarter. 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.

The California firm's market capitalization jumped to some US$224 billion, as it raced ahead of Toyota to become the most valuable auto firm.

After the numbers were announced, Tesla's share price shot up almost nine per cent in premarket trading to US$1,215.69. The shares are up more than 180% so far this year, and 80% of that gain has occurred within the last three months, according to data from Yahoo Finance Premium.

Other reports by Click Lancashire

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