Tesla Stock Shining After Record Quarterly Performance

Tesla stock price soared more than 13% in post-market trading as the world’s largest electric vehicle company reported record quarterly earnings. Its revenue of $8.77 billion soared 39% year over year, topping analysts’ consensus estimate by $460 million.
In addition, the announcement of delivering half a million vehicles this year added to investor’s sentiments. Tesla stock regained upside momentum after record quarterly numbers. Its shares were under pressure in the past few weeks amid the broader market volatility.
TSLA Tesla, Inc. daily Stock Chart

Fifth Straight Profitability Backed Tesla Stock Upside  

Tesla has generated profits in the five consecutive quarters while the latest profit was the biggest in its history.
The largest electric vehicle company has generated a record third-quarter operating income of $809 million. Its earnings per share stood around $0.76, beating analysts forecast by $0.16 per share.
“We continue to grow as fast as we can while focusing on cost control and quality,” he said. “I think I’ve never felt more optimistic about the future of Tesla than I do today,” CEO Elan Musk said.
Its third-quarter sales came in around $8.77 billion compared to $6.30 billion a year-ago period. The electric vehicle company has delivered 139,300 vehicles in the third quarter while the CEO expects to reach 500,000 vehicle deliveries in 2020.
It has delivered 319,000 cars in the first three quarters of this year. Moreover, the company claims to deliver almost 840000 vehicles next year.

Capacity Increase is Adding to Sentiments

The company has aggressively been working on enhancing its production capacity to capitalize on increasing demand. Tesla said its Fremont plant’s capacity will reach 500,000 units a year. The EV company also claims that its Shanghai factory has the potential to build 250,000 Model 3 vehicles a year.
The company also appears in a strong cash position to support expansion plans. It has generated $1.3 billion in free cash flows in the third quarter. Quarter-end cash and cash equivalents increased by $5.9 billion to $14.5 billion.

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