Tesla extends profit run, promises record production, driving stock up 13%

Tesla extends profit run, promises record production, driving stock up 13%

Tesla Inc (TSLA.O) on Wednesday posted the second quarterly profit in a row on record vehicle deliveries and said it would deliver more than 500,000 units this year, as the electric carmaker’s shares surged to new highs, Trend reports citing Reuters.

Shares rose 13% to $654 after hours, reaching an all-time high and for the first time cracking the $600 mark.

Tesla on Wednesday said the manufacturing process at its new Shanghai factory was running as expected and said it would increase production of its mass-market Model 3 due to strong demand in China.

The company also said it has started production of its new Model Y, an electric crossover utility vehicle, at its Fremont, California plant this month and plans to deliver the first models by the end of March, ahead of schedule.

Investors overall are betting that Tesla has overcome its production, legal and management struggles and is leading the industry on technological innovation for the next generation of cars.

The investor appetite also is a boon to Tesla CEO Elon Musk, whose mercurial behavior forced him to step down as chairman after a series of scandals and investor doubts about Tesla’s ability to withstand competition from larger, better capitalized global rivals.

Tesla said it “should comfortably exceed” 500,000 vehicle deliveries in 2020, up from 367,500 last year.

Cost efficiencies and high production volumes should allow it to ultimately reach an industry-leading operating margin, the company said. It reported a 4.9% operating margin in the fourth quarter.

“The point Tesla is already starting Model Y production in Fremont was the most notable item in the release. For a company that has always been late, this is a big improvement. First they were looking at a late 2020 Model Y ramp, then pulled forward to summer time, and now we have production in 1Q20,” Roth Capital Partners analyst Craig Irwin wrote in a note.

The company's cost efficiencies become apparent when comparing revenue and profit on a per-vehicle-basis. A review of Tesla's results showed that even though revenue per unit delivered rose by only 3% on a quarterly basis in the fourth quarter, operating profits per vehicle rose by roughly 19% in the same time.

Tesla’s stock has more than doubled in value since the company posted a third-quarter profit, beat estimates for 2019 vehicle deliveries and ramped up production at its Gigafactory in China.

The latest rally pushed the company to a valuation of more than $104 billion and some analysts questioned the rationale.

“It has a fantastic brand, formidable manufacturing capabilities and (by all accounts) a fabulous product; but is it really worth more than Volkswagen,” said Hargreaves Lansdown analyst Nicholas Hyett.

Tesla last week overtook the German company as the second most valuable carmaker behind Japan’s Toyota Motor Corp (7203.T).

Volkswagen produced nearly 11 million vehicles in 2018 and reported an operating profit of 13.92 billion euros ($15.44 billion) in the same year.

As China tries to contain a rapidly spreading coronavirus, Tesla expects a delay of one and a half weeks in the ramp up of the Shanghai-built Model 3 due to a government-required factory shutdown.

The Model Y production in California and the Shanghai factory ramp-up are expected to “temporarily weigh on margins.”

Subscribe to Trend in Google News! Subscribe
No decision by Iran on direct talks with US - FM
No decision by Iran on direct talks with US - FM
Footage of Iranian Minister of Roads and Urban Development arriving in Fuzuli International Airport published (PHOTO)
Footage of Iranian Minister of Roads and Urban Development arriving in Fuzuli International Airport published (PHOTO)
Iranian Minister of Roads and Urban Development visits Azerbaijani liberated lands
Iranian Minister of Roads and Urban Development visits Azerbaijani liberated lands
Loading Bars
Latest
Foundation stone laid for monument to Uzeyir Hajibeyov in St. Petersburg
Turkmenistan boosts trade with Kazakhstan over 11M2021
Tajikistan ratifies railway transport agreement with Turkmenistan
Price indexes of financial, industrial sectors at Uzbek stock exchange rise
Russia’s Kamaz-Leasing company opens representative office in Azerbaijan
Supply of electricity all across Kazakhstan completely resumed - gov't
Azerbaijan's Azer Turk Bank discloses volume of public deposits for 2021
Azerbaijani commandos hold training exercises (PHOTO/VIDEO)
Uzbekistan sees increase in volume of cotton fiber produced
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan's Alat port receives first container train from Uzbekistan
Iran's minister of industry confirms low quality of domestic cars
Azerbaijan confirms 2,468 more COVID-19 cases, 5,197 recoveries
Foundation of new road bridge across Astarachay River laid between Iran and Azerbaijan (PHOTO)
Big rise in prices negatively affects Kazakh economy - National Bank
World Bank Lauds India's Covid Vaccination efforts but says reaching next billion 'could be challenging'
Azerbaijan names vaccines delivered under COVAX initiative in 2021
Azerbaijan's Central Bank to auction its short-term notes
Uzbekistan restores electricity supply in number of its regions
Missing World War II aircraft found in India after 77 years
Iran approves creation of national cryptocurrency
Navy holds high level meeting on creation of Maritime Theatre Command
Azerbaijan's Azer Turk Bank announces net profit for 2021
Food-processing enterprises may be built on Azerbaijan's liberated lands - deputy minister
Turkey records increase in export of ready-made clothing to Azerbaijan
Turkey’s export of steel to Azerbaijan up
Azerbaijan sees rise in domestic money supply for 2021
India Inc proposes additional 1% CSR levy for booster shots
Azerbaijan to get another batch of Sputnik V vaccine against COVID-19 in 2022
Women interested in creating business on Azerbaijani liberated lands - agency
Construction costs in Georgia's Tbilisi increase
Azerbaijan, WB discuss ways to use wind energy potential of Caspian Sea (PHOTO)
Turkmengaz opens tender to buy plant equipment
Azerbaijan Children Hotline released its report for 2021 (PHOTO)
European Commission to support agriculture reform, transition to green economy in Uzbekistan
President of Azerbaijan Ilham Aliyev calls President of Ukraine
SOCAR Turkey talks on integration of innovation solutions at STAR Refinery
Pfizer and BioNTech launch trial of Omicron-targeted COVID vaccine
French Lagazetteaz.fr online newspaper renews interface (PHOTO)
Timing of Azerbaijan-Iran intergovernmental commission's next meeting revealed
Demarcation of Armenia-Azerbaijan border to make sure no armed incidents happen - ex-CSTO Sec-Gen
Head of Development Bank of Kazakhstan dismissed
All Baku-Istanbul and Istanbul-Baku flights of AZAL postponed
J&J expects up to $3.5 bln in COVID vaccine sales this year
Iran to contribute to reconstruction of liberated territories of Azerbaijan - Iranian minister
SOCAR AQS, Iraq's IDC mull opportunities for co-op in drilling
Azerbaijan names timeframe of commissioning new bridge on border with Iran
Iran aiming to boost exports of fish products to South East Asian countries
I do hope that post-war period will open new opportunities for whole region - President Ilham Aliyev
Iranian company may become resident of industrial park in Azerbaijan - deputy PM
Abu Dhabi's Chimera closes second venture capital fund at $10 bln
Confident that Iranian companies will begin to work actively in liberated lands in near future - President Ilham Aliyev
Positive trend noted in enhancement of tax administration in Azerbaijan – minister
Georgia's giant auto dealer expanding South-West, opens branches in Ukraine, UAE
Istanbul's third airport suspends its work until January 26 - Turkish Airlines
Azerbaijan Army’s Engineering Troops continue activities on clearing roads of snow - MoD (VIDEO)
Turkmen tomatoes gaining share in foreign markets
Russia records over 67,800 COVID-19 cases in last 24 hours
Azerbaijan completing work on first "smart village" in Zangilan district
Azerbaijan, Iran may simplify border crossing procedure - minister
Azerbaijan talks results of flour, bread price monitorings
Azerbaijan, Iran sign protocol on construction of new bridge over Astarachay River (PHOTO)
New bridge over Astrachay River on Azerbaijan-Iran border to be built
‘Nar’ takes the title of Azerbaijan champion (PHOTO)
SOCAR Turkey names new target markets for Petkim’s products
Turkey reports rise in leather exports to Azerbaijan for 2021
SOCAR Turkey working on improving STAR-Petkim integration
Kazakhstan Electricity Grid Operating Company turns on all "North-East-South of Kazakhstan" transmission lines
Uzbekistan resumes operation of its airports
Karabakh to become most beautiful region of Azerbaijan soon – deputy PM
President Ilham Aliyev presents Istiglal Order to Chairperson of Organization of Veterans of War, Labor and Armed Forces of Azerbaijan (PHOTO/VIDEO)
Uzbekistan begins to restore electricity supply following power outages
Turkmen agriculture ministry opens tender for supplier selection
Turkey's chemical exports to Azerbaijan increase in 2021
President of Azerbaijan Ilham Aliyev holds videoconference meeting with Iranian minister (PHOTO/VIDEO)
Azerbaijani oil prices decline
Israeli envoy recalls key role of India in WW-I
Kyrgyzstan gradually restoring energy system after power outage in Bishkek
Uzbekistan accredits Russia's Gazprombank
Credit Suisse's problems mount as lender warns on Q4 profit
Israel mulls offering 4th COVID vaccine dose to all adults
Azerbaijan commissions several customs posts in liberated areas
Georgia names main suppliers of coal
Kazakhstan’s Almaty Int’l Airport operating as usual despite power outage in city
Uzbekistan discloses reasons for power outage
Uzbekistan suspends operation of airports due to power outage
Georgia to highly benefit from Turkish medicines – ministry
Azerbaijani First VP Mehriban Aliyeva congratulates Fatma Sattarova on 100th birthday anniversary (PHOTO)
Kazakhstan taking measures to eliminate accident that caused power outage – KEGOC
Russian company acquires stake in Uzbek cement plant
Loan portfolio of banks increases in Azerbaijan
Georgia reports new record high COVID-19 cases
Georgia’s Poti FIZ eyes launching new projects in 2022
Electricity supply facing security challenges, requires multiple services
Azerbaijani Defense Minister's visit to Iran starts
Kyrgyzstan’s Bishkek experiencing power outages across entire city
Azerbaijan’s role in solving global problems is growing - Analysis
Azerbaijan organizes movement of working trains on Zangazur corridor (PHOTO)
Kazakhstan Deposits Insurance Fund raises maximum recommended rates on deposits
Uzbekistan’s Tashkent Metro suspends operations
All news