Tesla Delivers More Car Sales Than Expected For The Quarter
Updated: Oct 16, 2020
Tesla Inc. (TSLA) sold 139,300 vehicles in the quarter ended Sept. 30th, ahead of earlier estimates that predicted only 137,000 cars. The company's stock price has fallen since the news, nearly 7% down on the day. Investors speculate the stock price falling has much to do with day trader pressure being put on the stock. Tesla has 40 days to report its revenue & profit figures, and Wall Street expects a solid quarterly profit, which would extend the company's longest streak to 5 consecutive profitable quarters.
This is great news for long term investors. Watching Tesla at this stage in their growth is like watching a newborn baby take its first steps. And this newborn has the potential to become a goliath. Tesla's constant innovation and rapid international growth are poising itself to dominate the next phase of the automobile industry. Other companies such as Volkswagen, GM, and Ford, have all launched competing electric cars attempting to take market share away from the threatening newborn. Yet Tesla's battery is far more powerful, their technology is safer and more exciting, and their brand has been established as the sleek, sexy alternative to gas-powered cars.
According to Tesla founder and CEO Elon Musk, Tesla is expected to produce 20 million cars annually within the decade. In perspective, that's nearly double the production of Volkswagen AG last year as the world's best selling car company.
To accomplish this growth, Tesla is currently building production facilities in Berlin and Austin, Texas. It said it plans to finance further growth through stock offerings, indisputably the best source of capital for this young behemoth.
Long term investors should be excited as more positive news comes out about Tesla. The company is poised to be one of the best performing stocks over the next 15 years.