Tesla’s hot start ruined
The Canadian Press - Apr 03, 2020 - Business Buzz

Photo: The Canadian Press

BERKELEY, Calif. — Tesla’s sales of its increasingly popular electric cars got off to fast start this year, even though the company had to slam the brakes along with other major automakers last month because of worldwide efforts to contain the worst pandemic in a century.

The Palo Alto, Calif., company delivered 88,400 vehicles during the first three months of the year, based on preliminary numbers released Thursday. That represented a 40% increase from the same time last year and came close to matching the average sales estimate of 89,000 vehicles among analysts polled by FactSet. Those projections had fallen from estimated sales of 107,000 Tesla vehicles when FactSet surveyed analysts at the end of February.

Investors apparently had been bracing for a letdown amid the economic turmoil triggered by the health crisis that has already killed more than 50,000 people worldwide while infecting more than 1 million. Wedbush Securities analyst Daniel Ives described Tesla’s sales numbers as “a small victory in a dark environment.”

Tesla’s stock surged nearly 17% to $531 in extended trading after the first-quarter sales figures came out. Even so, Tesla’s stock has lost nearly half its value since peaking nearly two months ago amid rising hopes that the company’s cars were on the verge of making the leap from the luxury to mainstream market.

Tesla CEO Elon Muck was among those who initially downplayed the threat posed by the coronavirus, and publicly predicted it would be not much worse than the flu. He has since pledged to help make the ventilators needed for people battling COVID-19, although local officials had to pressure Tesla to close its main factory in Fremont, California, last month after an edict was issued to close down most businesses.


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