Tesla Inc becomes world’s most valuable car company after 2Q vehicle
The electric car company delivered nearly 90,650 vehicles during the second quarter, handily beating Wall Street estimates of 74,100
Telsa Inc () delivered nearly 90,650 vehicles during the second quarter, sending shares soaring around 9% in premarket New York trading on Thursday morning.
The figures beat Wall Street expectations of around 74,100 in a clear sign that Tesla’s sales have fared much better than its competitors.
The California-based electric vehicle maker now boasts a valuation of US$208 billion, positioning it ahead of Japan’s Toyota as the world’s most valuable car company.
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Tesla produced 82,272 vehicles in the second quarter, including Model S/X production of 6,326 with deliveries of 10,600, and Model 3/Y production of 75,946 with 80,050 deliveries.
During the quarter, Tesla cut prices of its electric vehicles by as much as 6% in North America in an effort to revitalize demand amid the economic downturn and made similar moves in China.
CEO Elon Musk congratulated employees on a “well-executed” quarter in an email on Wednesday ahead of the release.
“Just amazing how well you executed, especially in such difficult times. I am so proud to work with you!” read the email in its entirety, CNBC reported.
Musk’s leaked company-wide employee communications are eagerly anticipated by analysts as a bellwether of how business is faring.
Analysts were still striking a cautious tone in regards to the automaker’s valuation, however.
Nicholas Hyett, equity analyst at Hargreaves Lansdown, wrote in a Thursday note: “(For) all its operational excellence we continue to struggle with Tesla’s valuation. It’s shares trade on 147 times next year’s profits, compared to the 13.7 times for rival Toyota from whom Tesla recently claimed the crown of most valuable automotive manufacture. That implies massive growth over the coming years even as traditional car manufacturers bring increasingly competitive rival models to market.”
“The economic backdrop isn’t ideal either,” Hyett added. “An economic downturn could well be on the horizon and times of economic strain are not a good time to be selling premium sedans, as things stand even Tesla’s ‘affordable’ Model 3 will set a UK buyer back some £40,000.”
“Our view of Tesla remains unchanged. Terrific brand, terrific products, but terrifying price,” Hyett concluded.
Shares of Tesla traded around US$1,282 before the bell on Thursday morning.
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