When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.

Tesla shares soar after second-quarter deliveries beat estimates

Tesla said in a press release on Thursday that it delivered 90,650 vehicles during the last quarter, exceeding analysts' expectations. Due to the coronavirus-related lockdowns, the auto industry has had its sales diminishing, as shoppers remain confined within their homes. However, the unexpected delivery numbers caused Tesla's shares to increase by roughly $85 (8%) in early trading to $1,204 (via Reuters).

This news comes just a day after Tesla became the world's most valuable automaker with a $208 billion valuation (via Forbes), overcoming Japan's Toyota. Today's events amplify the confidence that investors exhibit in Tesla's ability to define the industry's software-driven future. Refinitiv estimated that the automaker would ship 74,130 vehicles, but analysts stated that their expectations had been outpaced for a profitable second quarter, which would mark the first time in Tesla's history that it would report a profitable quarter for the fourth consecutive time.

Tesla is ramping up production at its Shanghai factory, where it wishes to manufacture 150,000 vehicles by the end of this year. The plant was only briefly affected by the coronavirus shutdowns earlier in the year, whilst Tesla's Fremont plant remained shut down for roughly six weeks during the second quarter. As a result, production plummeted by about 20%. Tesla said:

“While our main factory in Fremont was shut down for much of the quarter, we have successfully ramped production back to prior levels.”

At the start of this year, Tesla stated that it would deliver at least 500,000 vehicles during this year, a forecast that hasn't changed despite the ongoing pandemic.

Report a problem with article
Next Article

NBA 2K21 pricing suggests next-generation games could cost $70 as standard

ivacy banner
Previous Article

Get 5 years of Ivacy VPN at 90% off for just $1 per month

Join the conversation!

Login or Sign Up to read and post a comment.

1 Comment - Add comment