By
Svetlana Soroka
April 18th, 2024
Elon Musk, CEO of Tesla, haw expressed optimism in a leaked email that the company will post a profitable Q2 figure. The nudging has sparked an increase in TSLA stock which is above $1,000 again.
Electric auto car maker Tesla Inc (NASDAQ: TSLA) has recorded yet another great trading day after the company’s stock appreciated by over $49 on Monday to close at $1,009.35. This blissful pump came as a result of the optimistic view of the company’s CEO Elon Musk, who said that the company will be able to avoid a second-quarter loss. Should his words hold true, this will be a compliment to the Q1 profitability milestone.
Today Tesla (TSLA) stock is up again. It is trading at around $1,037 (+2.82%). The market cap is $192.15 billion.
Following the coronavirus disease and the ensuing pandemic which forced national lockdown, companies including Tesla have been experiencing tumultuous sales which have economic impacts on businesses. While companies like TSLA have weathered the storm and regained investors’ confidence, others may never recover from the COVID-19 induced blow. Beyond government policies and palliatives for SMEs, the eventual growth post-COVID-19 remains a key function of the active partners in the business, a role Elon Musk has stepped up to.
Tesla’s History in Perspective
The company’s current productive outlook was founded on the backdrop of excellence. Tesla, Inc. (formerly Tesla Motors, Inc.) is an American electric vehicle and clean energy company based in Palo Alto, California. The company specializes in electric vehicle manufacturing, battery energy storage from home to grid-scale and, through its acquisition of SolarCity, solar panel and solar roof tile manufacturing.
Tesla Motors was founded by engineers Martin Eberhard and Marc Tarpenning in July 2003. The company’s name serves as a tribute to Nikola Tesla, a Serbian-American inventor, and electrical engineer. The next three employees were Ian Wright, Elon Musk, and J. B. Straubel, all of whom are retroactively allowed to call themselves co-founders of the company. Musk, who formerly served as chairman and is the current CEO, said that he envisioned Tesla Motors as a technology company and independent automaker, aimed at eventually offering electric cars at prices affordable to the average consumer. In February 2017, Tesla Motors shortened its name to Tesla.
On March 9, 2020, the company produced its 1 millionth electric car. As of March 2020, the Model 3 ranks as the world’s all-time best-selling plug-in electric car, with more than 500,000 delivered. Tesla has never had a profitable year, however, it has had several individually profitable quarters, most recently the quarters ending September 2018, December 2018, September 2019, December 2019, and March 2020.
Expectation for Another Profitable Quarter that May Boost Tesla (TSLA) Stock
In preparation to report its second-quarter sales and revenue figure this week, Elon Musk has characteristically sent a motivational email to his employees. The email that was obtained by Bloomberg and published by Electrek reveals the CEO saying:
“Breaking even is looking super tight. Really makes a difference for every car you build and deliver. Please go all out to ensure victory!”
“It’s not clear whether “breaking even” was referring to the company’s profit margin, which may require it to sell a certain number of vehicles during the quarter, or another metric, like production numbers versus expectations or previous quarters’ figures”, Lora Kolodny wrote for CNBC.
TSLA shares have been previously tipped to fall by an average of $2 based on an over projected delivery estimate that became impossible following a strained global supply chain network. The company has looked to Chinese markets to shore up sales and until the figures are officially declared, Elon Musk’s nudging cannot be discarded.