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Elon Musk has announced that Tesla has now produced 1 million vehicles. Tesla (TSLA) stock positively reacted to this announcement and jumped almost 10% in the premarket.
As many companies decry the current state of the market, some are still finding ways to weather the storm. The world’s biggest firms including Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN) and Tesla Inc (NASDAQ: TSLA), have seen record plunges in recent times, because of the coronavirus pandemic. Tesla, however, is forging ahead and still boasts of interesting gains even as a lot of its 2020 returns were wiped out. Tesla (TSLA) stock has now gone up as Elon Musk announced a milestone achievement.
Elon Musk Announces Tesla Record Achievement
In a recent tweet posted a few hours ago, Tesla CEO Elon Musk announced that the company has now made 1 million of its electric vehicles. The CEO congratulated the company on the record in the tweet, with a picture of members of his “Tesla team.”
Congratulations Tesla team on making our 1,000,000th car!! pic.twitter.com/5M99a9LLQi
— Elon Musk (@elonmusk) March 10, 2020
The first Tesla, a Roadster, was released twelve years ago in 2008. Since then, the company has come a long way and has added other offerings to its portfolio. At the moment, the Tesla brand has four models. These include the Model X, Model Y, Model 3 and Model S. The first two are SUVs while the others are sedans.
The congratulatory tweet also had an image of the one-millionth car, a red Model Y. Deliveries for this model will begin before the month runs out. Tesla also has a Cybertruck in the works and production will begin sometime next year.
Elon Musk Tweet Boosts Tesla Stock
Yesterday, TSLA closed at $608 after losing 13.57%, joining the rest of the financial market in the recent bleeding. The Elon Musk announcement has changed things a bit with TSLA’s premarket price up more than 9% to $663.65. As the market opened, TSLA is 4.45% up. The current price is $635.04.
In one month, TSLA has lost 21.49%. However, even though it’s significantly reduced, its year-to-date (YTD) gains still look a lot healthier at over 45%.
Tesla Looks Good
In general, Tesla took 12 years to hit the 1 million mark. However, the next 1 million might come a lot faster. Tesla now has a functioning factory in Shanghai, China. The factory has already begun delivering Model 3 vehicles made in China. The company has also begun working on its German gigafactory located close to Berlin. With all of its factories, Tesla looks good for 2020.
However, the coronavirus is biting down on many companies and Tesla isn’t spared. The company’s sales in China have declined significantly as movement is still being significantly restricted. Regardless, Tesla seems well on its way to an impressive 2020, especially if the epidemic somehow gets under control sometime soon. The chance that it will happen is however somewhat bleak.
Also, Tesla still has a long way to go if it will favorably compete with other major automakers. A Japan Times report shows that Volkswagen sold the most cars in 2019, at 10.97 million units. Toyota came in at second place with 10.74 million. With numbers like this, even though Tesla is relatively new compared to others, there is still a lot of work to be done.