Tesla vastly beat analyst forecasts and may accelerate its entry into the S&P500 index.
Tesla posted a fifth straight quarter of earnings and said it remains on track to deliver 500,000 cars in 2020. The winning streak could add momentum to Tesla’s entry into the S&P 500 Index and defies a downtrend among other automakers struggling to overcome a pandemic-induced slide. The Palo Alto, California-based company posted third-quarter earnings of 76 cents a share on an adjusted basis, beating analyst consensus estimates of 55 cents a share. The company’s shares rose as much as 4.5% in off-market trading after closing at $ 422.64. The stock is up 405% so far this year.
Half a million cars
Tesla said it expects to meet the goal of delivering half a million cars worldwide this year, a goal that wavered after last-quarter earnings and CEO Elon Musk hinted last month that it might not be met. The company needs more than 181,000 cars in the last three months of the year to reach that mark, which would be a 30% jump compared to the previous quarter. “While achieving this goal has become more difficult, delivering half a million vehicles in 2020 remains our goal,” the company said in a statement. Meeting that will largely depend on increased production at your Shanghai factory and increased production of your model.
In January, before the start of the coronavirus pandemic, Tesla predicted that it would “comfortably exceed” deliveries of 500,000 vehicles for the entire year, a 36% increase over 2019. Still, the company’s likely double-digit growth stands out in a year in which global auto industry deliveries are projected to be 14% below pre-Covid estimates and 22% below year-on-year. . past, according to LMC Automotive. Tesla’s revenue rose to $ 8.8 billion, better than expected, even as sales of regulatory credits to other automakers fell to $ 397 million. That was down from $ 428 million in the second quarter.