- Title: Tesla shares soar 21% as surprise profit answers skeptics
- Date: 24th October 2019
- Summary: LOS ANGELES, CALIFORNIA, UNITED STATES (FILE) (REUTERS) TESLA SIGN ON A DEALERSHIP
- Embargoed: 7th November 2019 09:50
- Keywords: Tesla Tesla results Elon Musk
- Location: LOS ANGELES, MOJAVE AND SANTA CLARITA, CALIFORNIA; NEW YORK, NEW YORK, UNITED STATES / SHANGHAI, CHINA / LILLESTROM, NORWAY
- City: LOS ANGELES, MOJAVE AND SANTA CLARITA, CALIFORNIA; NEW YORK, NEW YORK, UNITED STATES / SHANGHAI, CHINA / LILLESTROM, NORWAY
- Country: Various
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA001B2GJAML
- Aspect Ratio: 16:9
- Story Text: Tesla Inc. on Wednesday (October 23) surprised investors with a quarterly profit that sent its shares soaring, as Chief Executive Elon Musk promised a 2020 rollout of a cheaper SUV and more self-driving technology to stay ahead of larger rivals rushing into the premium electric vehicle market he created.
Shares rose nearly 21% to $307.12 after hours on the unexpected news, crossing $300 for the first time since March 1 after record deliveries and cost cuts ensured a profitable third quarter.
Tesla on Wednesday posted a cash balance increase to $5.3 billion and reported a profit of $1.86 per share, shattering analyst expectations for a loss of 42 cents per share.
The third-quarter results are an important milestone for Tesla and redemption for Musk who had to step down as chairman after a series of scandals and investor doubts about Tesla's ability to withstand competition from larger, better capitalized global rivals.
But Tesla has yet to prove that it can be consistently profitable while managing the start of production for Model 3 sedans at its new factory in Shanghai and for Model Y sport utilities next year.
(Production: Hannah Ellison)
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