The end of the first quarter of 2020 didn’t look shabby for everyone. We all know the stock market reached new lows, Oil dropped 60% in just one month, and the world is under siege due to Coronavirus pandemic. But the company that ended the quarter on a positive note is Tesla.
As we discussed in a previous article, multiple automotive factories closed due to COVID-19. The shrinking of activity also happened to Tesla, just a couple of months after Elon Musk announced the opening of a giga-factory in Shanghai. This factory, alongside the one based in Fremont, California, is temporarily closed until at least May 3. Also, in Germany, the workers were sent home. The Shanghai factory still managed to "achieve record levels of production, despite significant setbacks."
The company set a target of 500,000 vehicle deliveries for this year, but analysts consider it to be unachievable, given the current situation.
Yesterday, for the first quarter, Tesla reported 88,400 vehicle deliveries. According to FactSet, the number was just a little off from the 89,000 consensuses. The company stated that this was the "best ever first-quarter performance." Besides deliveries, Tesla said it produces near 103,000 vehicles.
During the past nine months, Tesla share price gained more than 400%, reaching a high of $917.42 on February 19. But given the global context, the shares lost half of their value. This quarter helped the shares to gain 17% during after-hours trading.
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Sources: edition.cnn.com, marketwatch.com, thestreet.com
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