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On July 16, Tesla stock closed 2.93% down, at $1,500.64 per share. After hours, it dropped to $1,488.04, losing 0.84%. In the pre-market today, Tesla stock was trading around $1,510 per share.
Recently, the electric vehicles giant Tesla Inc (NASDAQ: TSLA) delivered its Q2 2020 sales report. It showed that the only U.S. vehicle factory of Tesla in California saw a significant plummet in deliveries. Meanwhile, Tesla (TSLA) stock dropped.
According to Tesla, the company delivered 90,650 cars to customers in the quarter that ended on June 30. In contrast, analysts were expecting about 83,000. However, despite exceeding these expectations, the distribution of registrations across Tesla markets was far below estimates.
Tesla Second-Quarter Sales in California
Registrations of Tesla vehicles in California, the major market for the electric-car maker, tanked by almost 48% compared with a year earlier to 9,774 vehicles in Q2. Model 3 registrations in the state fell 63.6% to 5,951 vehicles. Total vehicle registrations in 23 states dropped by nearly 49% to 18,702 vehicles. Such a plunge resulted from the coronavirus pandemic that made the California plant of Tesla shut down for about six weeks and suspend deliveries.
14,954 Model 3 vehicles were manufactured and delivered by the Shanghai factory.
The sales, still impressive, allow investors to hope for positive earnings data that Tesla will release on July 22. Many believe Tesla will have its fourth profitable quarter in a row. If that happens, Tesla could become eligible for inclusion in the S&P 500 index.
In the first quarter, Tesla also demonstrated record deliveries despite a massive drop-off in demand. If the company continues performing this way, its 2020 annual report will have a lot to please investors with.
Tesla (TSLA) Stock Tanks
After Tesla revealed its second-quarter deliveries, its stock went down. On July 16, it closed 2.93% down, at $1,500.64 per share. After hours, it dropped to $1,488.04, losing 0.84%. In the pre-market today, Tesla stock was trading at $1,513.51 per share. Its market cap makes up $286.75 billion.
With Tesla stock price being around $1,500 level, experts believe there is room for further growth. Many have already raised their price targets for the company. For example, Piper Sandler analyst Alexander Potter believes that it may hit a $2,300 all-time high. Wedbush tech analyst Dan Ives also thinks that Tesla stock price will remain bullish. He predicts it could reach $2,000.
There is a question whether Tesla is a buy now or it needs to drop by at least $1,000 to attract investors. Some say that it is wise to invest in the company now as its production may go up more than 20-fold from the current 400,000 cars a year to 10 million vehicles. Tesla’s market cap that is nearing $300 billion shows investors’ optimism and strong interest in TSLA stock. Therefore, Tesla stands good chances of further growth.