After long months of investors’ disliking due to fears of insufficient delivery and satisfaction of new models’ demand, it seems now that the company has bounced from the lowest numbers in three years. Company stocks rise into black numbers again. The reason for this optimism, that pulls company stocks up in capital markets, is the positive Q2 result in 2019.
The initial impulse arrived a couple of days ago, when Elon Musk stated in the general meeting that economic results in this year’s second quarter could break a record. The message then skyrocketed stocks by 26 percent in only two business days.
In the second half of last week we could see that this was not only an attempt to satisfy investors and general public. After results were revealed, the numbers showed that Tesla was able to deliver 51 percent more cars compared to Q1. To be precise, it was 95.200 electric cars. Tesla has even broken the record number from Q4 2018, when it delivered 90.700 cars to the market. Capital markets reaction followed quickly and company stocks rose by 8 percent.
After Tesla’s revenue decreased by 31 percent in Q1 2019 and the company submitted a 702 million USD loss, it logical that now the company is trying to satisfy its investors and persuade them that the models’ demand is still high and the company is able to cover it effectively.
In the year 2019, the company stocks’ value has decreased quite dramatically. The stocks value bounced from around 179 USD per 1 stock at the beginning of June. In the last month they have risen by 31 percent after aforementioned positive news and its value was around 235 USD per 1 stock. To put this into perspective – in December 2018 the value floated around 377 USD per 1 stock.
After long months in red numbers and a series of negative news regarding delivery dates breaches, management changes, Musk’s provocative tweets and more negative comments from Morgen Stanley analytics (Loup Ventures as well), Tesla comes into investors’ focus again. If they are able to hold their current position and production settings, Tesla may represent a very interesting asset in every investor’s portfolio.