Tesla growth continues despite economic upheaval

Elon Musk

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Chief Tesla Elon Musk

Electric car maker Tesla has shaken off the economic upheaval caused by the pandemic to report its fourth consecutive consecutive quarter.

The Californian company earned $ 104 million (£ 82 million) in the three months to June 30, with growth that led it on the road to inclusion in the S&P 500.

This means that Tesla’s already rising stocks will see even greater demand from investors following the index.

The stock peaked in after-hours trading Tesla released the results.

Tesla said his bottom line was helped by his new factory in China, where costs are lower.

In the United States, the pandemic forced Chief Elon Musk to keep the company’s main factory closed in California until mid-May.

Faced with expectations

While the shutdown weighed on the company’s production, it nevertheless exceeded analyst expectations.

Tesla said it produced 82,272 cars and delivered 90,650 to customers, down about 5% from the same quarter of 2019. The decline hit revenue, which decreased by 5% to $ 6 billion.

But the overall resilience marks a contrast with rival automakers such as General Motors, many of which have reported a drop in sales of over 30%.

Tesla said he still hoped to deliver on promises to make 500,000 vehicles this year.

“We have the installed capacity to exceed 500,000 vehicle deliveries this year, despite recent production stoppages,” said the company. “While achieving this has become more difficult, delivering half a million vehicles in 2020 remains our goal.”

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Tesla’s share price has nearly quadrupled since the beginning of the year, from $ 430 to over $ 1,550.

The staggering increase added to the long-standing debate on Tesla, which many critics claim is overrated.

This month, the company outperformed Toyota as the world’s most valuable automaker, with a market value of nearly $ 300 billion, although the Japanese company sold around 30 times more cars last year.

On May 1st, Musk himself tweeted Tesla’s share price was too high. The rise helped him push him into the ranks of the 10 richest people in the world, according to the billionaire rankings of Bloomberg and Forbes.

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