Tesla climbs back above US$1000 on Musk's break-even email

Yolanda Curtis
June 30, 2020

"Breaking even is looking super tight", Musk wrote.

Musk, 49, has routinely sent emails to rally the troops at the end of a quarter or year, and Tesla hasn't always lived up to the expectations set by his internal memos. "Please go all out to ensure victory", Elon Musk wrote to all the employees of the company, CNBC reported.

Tesla (NASDAQ:TSLA) is expected to report its Q2 vehicle output and delivery figures this week, while a profit would be a major surprise for Wall Street, which is now estimating a quarterly loss of $1.45 per share. Tesla has been profitable in its last three quarters.

Ahead of the delivery report, JMP Securities analyst Joseph Osha today raised the stock's price target to $1,050 (4% upside potential) from $1,001 and maintained a Buy rating, saying that the consensus for Q2 unit deliveries looks "reasonable" as the strength of the China market appears to be sufficient to offset a "disastrous" quarter in the USA and Europe.

The automaker is expected to report second-quarter delivery figures this week.

In its first quarter earnings update this year, Tesla walked back prior guidance saying that it has "capacity installed" to hit 500,000 vehicle deliveries in 2020, but remains uncertain how quickly its USA auto plant, and suppliers, can ramp up production following Covid-19 restrictions.

Overall, despite the slow down of EV production and controversy that followed Musk's threats to leave California if permission to reopen the Fremont factory was not given, Tesla has gone from strength to strength in 2020.

Despite the disruptions, shares have this year seen a great run and have now more than doubled in value. Although he will have to meet the targets for his compensation to be released, Musk could take $ 50 billion in shares.

At that time, Tesla also said its near-term profit guidance was "on hold", dampening hopes it may achieve its first full year of profitability. His tenure has been marked by controversy, but from an investment perspective, it has been an incredible run: "The stock has gone up roughly 50-fold since it started trading in 2010, and has more than doubled this year", writes Barron's.

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