December 2, 2020

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Tesla shares take off after quarterly revenue beat, record vehicle deliveries

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Article content continued Earlier this month, Tesla said it delivered 139,300 vehicles in the third...

Article content continued

Earlier this month, Tesla said it delivered 139,300 vehicles in the third quarter, a quarterly record for the electric carmaker, yet some analysts questioned whether the company could hit its ambitious year-end target.

Tesla has defied the downward trend of the wider auto industry in 2020 and bucked a pandemic and economic upheaval with steady sales and profitable quarters, sending shares up around 400 per cent this year.

The company has enjoyed a meteoric rise under Chief Executive Elon Musk, who tends to be outspoken and at times unconventional. At US$394.5 billion, Tesla’s market capitalization is the largest among all automakers in the world, despite Tesla trailing rivals in terms of sales, revenue and profit.

Tesla’s ascent highlights investor confidence about the future of electric vehicles and Tesla’s shift from niche carmaker to global leader in clean cars.

Revenue rose to a record US$8.77 billion from US$6.30 billion a year earlier. Analysts had expected revenue of US$8.36 billion, according to IBES data from Refinitiv.

Excluding items, Tesla posted a profit of 76 US cents per share. It reported net income of US$331 million.

© Thomson Reuters 2020