Tesla reaches new high after report swoons investors
By Joseph Toppe
Shares for Tesla are trading at roughly $902 (£655.59) by noon EDT on Friday, just two days after the electric vehicle maker showed company records in both revenue and profits.
Today’s upgrade marks the first time since January the company made an intraday record.
Tesla’s market cap stood at roughly $850bn by noon Friday.
Third quarter financials
Tesla’s total revenue increased 57% year-over-year, while operating income improved to $2bn compared to the same time in 2020, resulting in a 14.6% operating margin.
Year-over-year, operating income is up due to vehicle volume growth and cost reduction, while some of the quarter’s positives were partially offset by growth in operating expenses, lower regulatory credit revenue, additional supply chain costs and Bitcoin-related impairment of $51m.
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Tesla share predictions
In March, ARK Invest, a US-based investment management firm, estimated Tesla shares could reach $1,400 per share by 2024 and more than double that mark in 2025 to peak at $3,000.
To determine an accurate trajectory for Tesla shares in the ARK report, the study used 34 inputs to generate 40,000 possible outcomes. The possibilities produced gave Tesla a 25% chance of reaching $1,500 per share by 2025.
Q3 vehicle deliveries
Throughout the third quarter, Tesla built approximately 238,000 vehicles, while delivering more than 240,000 new cars.
According to the company release, final numbers could vary by up to 0.5% or more.
Meanwhile, Tesla vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results.
Production and delivery tallies for the third quarter include 8,941 new Model S/X vehicles with 9,275 new deliveries and 228,882 new Model 3/Y vehicles with 232,025 new deliveries.
Read more: Tesla stock forecast: everything you need to know