Wednesday January 22, 2020
Home Business Tesla Sales i...

Tesla Sales in 2019 Rise More than 50%: Report

Tesla Stock Hits Record as 2019 Sales Rise More Than 50%

0
//
tesla
Tesla has posted mostly losses during its first decade as a publicly held company, and it lost $1.1 billion during the first half of last year. Pixabay

Shares of electric car maker Tesla Inc. hit a record closing price Friday after the company reported that its global deliveries rose more than 50% last year.

The announcement Friday pushed Tesla’s shares up nearly 3% to a record close of $443.01. The stock has more than doubled in value since closing at $178.97 on June 3 of last year, its 12-month low point.

Tesla said it delivered a record of about 112,000 vehicles in the fourth quarter and about 367,500 for the full year.

Tesla, based in Palo Alto, California, had earlier projected deliveries of between 360,000 and 400,000 units worldwide.

The lower-cost Model 3 accounted for 83% of the company’s fourth-quarter sales at 92,550. The higher priced Model S Sedan and Model X large SUV made up the rest.

Tesla logo
A Tesla logo is seen in Los Angeles, California. VOA

The sales increase should bode well for Tesla’s fourth-quarter and full-year earnings next month.

But the company issued a note of caution Friday, saying that while sales figures are slightly conservative, they could vary by 0.5% or more when final numbers are out.

“Vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors” including cost of sales, foreign currency fluctuations and the mix of leased versus sold vehicles, Tesla’s said.

In the third quarter, Tesla posted a surprising $143 million profit, raising hopes that the company, which also makes solar panels and battery storage units, could finally be turning the corner to profitability.

Tesla has posted mostly losses during its first decade as a publicly held company, and it lost $1.1 billion during the first half of last year.

Tesla’s new factory in Shanghai, China, produced just under 1,000 cars for sale and has deliveries have started in the world’s largest car market, the company said in a prepared statement. Tesla broke ground on the factory less than a year ago, and expects to produce more than 3,000 vehicles per week there.

Also Read-Businesses in Vietnam Face Cash Shortage: Study

Wedbush analyst Daniel Ives, in a note to investors Friday, wrote that the recent rally in Tesla’s share price was driven in part by short-sellers covering their positions as the stock rose. But the increase also is due to underlying fundamental improvements “as the company’s ability to impressively not just talk the talk but walk the walk has been noticed by the street,” he wrote.

The coming year will be pivotal for Tesla and CEO Elon Musk with the start of production at the Shanghai factory, Ives wrote. (VOA)

Next Story

Musk-run Tesla Hits $100-bn Market Value for the First Time

In the third quarter, automotive revenues were $5.35 billion. Tesla said it expected to deliver between 360,000 and 400,000 vehicles this year, representing 45-65 per cent growth

0
Technology Entrepreneur speaking
Elon Musk, a technology entrepreneur. Pixabay

Signalling an all-electric future is coming our way, Elon Musk-run Tesla has hit the $100 billion in stock market valuation for the first time.

Tesla shares were last up 1.4 per cent at $555 after trading was closed on Tuesday, reports CNBC.

The milestone came less than a month after Tesla’s stock crossed $420 — a price Musk tweeted last year which put him in much trouble.

The $100 billion valuation must stay for both one-month and six-month average in order to help Musk get first of 12 tranches of $346 million in a record-breaking pay package.

Tesla is currently valued more than Ford Motor and General Motors combined.

Tesla logo
A Tesla logo is seen in Los Angeles, California. VOA

Musk lost his position as Tesla Chairman after posting a notorious tweet in August last year that he was “considering taking Tesla private at $420. Funding secured”.

The US Securities and Exchange Commission (SEC) sued Musk over the tweet, saying he misled investors by claiming falsely he had lined up funding for the take-private transaction.

Musk reached a settlement with the SEC, agreeing to give up his role as Tesla Chairman and pay a $20 million fine.

Also Read: Swiggy Admits Difference Between Online Food, Restaurant Rates

Tesla surprised Wall Street in October by registering a profitable third quarter with a total revenue of $6.3 billion riding on sales of its Model S, Model X and Model 3 electric cars.

In the third quarter, automotive revenues were $5.35 billion. Tesla said it expected to deliver between 360,000 and 400,000 vehicles this year, representing 45-65 per cent growth. (IANS)