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Due to the COVID-19 pandemic experts believe that Tesla Q2 results will be pure than in the first quarter. However, today TSLA stock is slightly up.
Tesla Inc (NASDAQ: TSLA) stock prices went down by 2.66% in the last trading session but were up in the pre-market and are slightly down now as the market opened on Monday. At the time of writing, TSLA is trading at $967.38 (+0.80%). This occurred as Tesla is expected to report the Q2 sales.
The good thing is that despite the COVID-19 pandemic, car sales are marginally doing well. Many analysts expect the number of car sales in the second quarter to be less than the first.
Tesla (TSLA) Stock amid Q2 Results Expectations
Deliveries forecasts for tesla in Q2 range between 50,000 and 67,000 cars. This will be a slightly worse performance than the Q1 of this year. In the first quarter, Tesla produced 103,000 cars. It delivered 88,000 of those cars.
Tesla still hasn’t given up its annual goal of delivering 500,000 cars. The closure of its Fremont California facility with the same manufacturing capacity may cause several hiccups in achieving that goal. The bulk of the predictions for the Q2 deliveries side with the Model 3. The other models are split with the balance after a 60,000 car deduction.
The dark horse though for Q2 will be the Model Y sales. The Tesla (TSLA) Model Y is the newest EV in the automakers’ lineup. Sales from the Model Y will be a gauge for demand by consumers.
One issue that has slowed down sales has been the closure of the Fremont facility. This factory is the only Tesla (TSLA) factory in the United States. Pundits are looking to see if the Shanghai factory will make up for the shortfall coming from Fremont.
The carmaker has had issues with the Alameda County concerning the reopening of the Fremont facility. This led to speculations that Elon Musk will relocate the factory from California to other locations.
While new factories in the United States may be in the works, it appears unlikely that Elon Musk will risk closing the Fremont facility.
Elon Musk Can Be Unpredictable
Then again, Elon Musk has been known for being unpredictable. This led to worries about having the current Tesla Chairman Robyn Denholm returning to the post. Elon Musk had to step down as Tesla (TSLA) chairman after his infamous tweets about taking Tesla private. The comments on social media forced the U.S. Securities and Exchange Commission (SEC) to force Musk to step down as chairman.
The Shanghai factory has an annual manufacturing capacity of 150,000 cars. This doesn’t mean though that it won’t take up the slack in production.
What remains to be seen is if the demand for Tesla (TSLA) cars are as strong as they used to be. Even if deliveries fall slightly in this quarter, demand is expected to improve in the third quarter.
With gains of up to 131% Tesla (TSLA) stock price is set to become one of the most sought-after stocks.
First, the annual shareholder meetings have to hold. After that, all bets are off the table.