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Tesla shares top $1 000 again on Musk’s break-even optimism

After passing VW, Tesla gains on Toyota.
The Tesla assembly plant in Fremont, California. Image: David Paul Morris/Bloomberg

Tesla’s stock price climbed back above $1 000 after chief executive officer Elon Musk suggested the electric-car maker may be able to avoid a second-quarter loss.

“Breaking even is looking super tight,” Musk wrote in an email to employees obtained by Bloomberg and first reported by Electrek. “Really makes a difference for every car you build and deliver. Please go all out to ensure victory!”

Tesla shares surged 5.2% on Monday to close at $1 009.35. The stock has soared 141% this year, putting its market capitalisation on course to rival Toyota Motor Corp, the most valuable automaker in the world by that measure.

Musk, 49, has routinely sent emails to rally the troops at the end of a quarter, though Tesla hasn’t always lived up to the expectations set by his internal memos. The company reported a record 97 000 deliveries for the three months that ended in September, falling short of the 100 000 mark he floated in an email to staff days earlier.

If Musk is on the mark this time, the carmaker could qualify for inclusion in the S&P 500 Index. To be eligible, the company needs to report positive quarterly earnings under generally accepted accounting principles.

While analysts on average project Tesla will lose almost $2 a share on a GAAP basis this quarter, higher-than-projected vehicle deliveries would make profitability a “less radical” idea, Dan Levy, a Credit Suisse analyst, wrote in a report Monday. In addition to underestimating volume, the company may be able to beat expectations by cutting expenses, boosting sales of regulatory credits and recognising more revenue related to its automated-driving system.

“Expectations are high, yet it’s unclear to us how the stock will be challenged,” Levy wrote. “With an S&P add expected in 2020, it would be further support for the stock.”

© 2020 Bloomberg

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I just want Tesla to crush Nikola Corporation for introducing a “zero emission” hydrogen fueled vehicle.

have my doubts about Nikola motors,they have no product,no proven technology.
Quote from : ‘The company focuses in Hydrogen Fuel Cell vehicles, which is controversial on its own. With current standards, it is less efficient than today’s battery electric vehicles. It requires significant infrastructure developments as unlike electric cars, fuel cell vehicles need to be filled up at a safe facility, think gas station but more complex. As of today, hydrogen’s only benefit includes a faster fill up time, but sadly, there’s no where to fill up. According to the Department of Energy, there are 49 hydrogen fueling stations in North America, with almost all of them within California.’


$1009 and it has not made profit!!! Wall street why???

same story with Hertz 🙂 bankrupt company’s shares are on the rise. Feds keeping wall street afloat

End of comments.





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