Tesla stock surges as company extends profit run
Company reports profits, promises record production and deliveries
US electric car maker published its quarterly report, announcing profits and a record number of deliveries that led to 10 per cent stock surge.
The results of the fourth quarter were better then expected, with its revenue rising to $7.38bn (£5.67bn, €6.7bn) versus $7.02bn, as predicted by Refinitiv. Moreover, the earnings per share were also higher ($2.14 versus $1.72).
Tesla is enjoying the second quarterly profit in a row after months of losses and issues with its models. Now the company expects positive cash flow and net income to go forward on a regular basis.
The only exception in Tesla's forecast was made for a period when the car maker will be launching its new Model Y. The pictures of a new crossover were published in the report. Tesla claims that its production has already begun in its plant in Fremont, California.
In the fourth quarter the corporation also made a record number of deliveries — 112,000. This is so far the best quarterly result for the company. In 2020, Tesla expects its deliveries to exceed 500,000 units.
Following the report, Tesla stock jumped 10 per cent in the pre-market trading, reaching $636.5 per share. In general, its shares have risen by over 120 per cent since the company unveiled its Q3 2019 earnings in October.
Tesla is currently expanding its business to EU and China, with two new plants built in Brandenburg, Germany, and Shanghai, China.
The Shanghai plant was opened ahead of schedule, and the first car produced there has already been delivered. Elon Musk wants the factory to produce 3,000 cars monthly in the future.
Tesla became the first foreign car manufacturer that operates within China. Currently the company is expected to issue guidances to its workers in Shanghai amid the coronavirus outbreak.
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