Despite COVID-19 shutdown, Tesla made over 90000 deliveries

Andrew Cummings
July 6, 2020

Shares in Tesla went over 4% on Wednesday to over $1,100 a piece, bringing the company's valuation to $209 billion - higher than Toyota at $205 billion. Model S and Model X accounted for 10,600 deliveries. Localizing production in China is helping reach more customers in the world's largest electric vehicle market by lowering prices.

Tesla's quarterly deliveries "are additional evidence that Tesla has the vehicle business backed into a corner", Gene Munster of Loup Ventures, a former Wall Street analyst turned undertaking capitalist, mentioned in a note. The new Model Y has the potential to become a big hit for the automaker.

While the Tesla CEO is hailed as a visionary by his followers, Musk's detractors fear about his penchant for saying controversial things on Twitter and up to date feedback suggesting that coronavirus concerns are overblown. The Model Y is now in production in Fremont, California. Tesla's Shanghai factory was impacted by the coronavirus in February, but production has since resumed as China emerges from the global pandemic.

Despite these setbacks - partly caused by production interruptions across the world amid the Covid-19 pandemic, Tesla remained optimistic about its production figures for the rest of the year. The factory is now back up to the production levels it was at before the pandemic.

"While our main factory in Fremont was shut down for much of the quarter, we have successfully ramped production back to prior levels", the company reported.

"With strong Q2 volumes, GAAP profitability is now in focus and appears achievable, which could lead to inclusion in the S&P 500", Ben Kallo, an analyst at Robert W. Baird who rates Tesla the equivalent of a hold, wrote in a report.

Additionally, it is still committed to increasing production capacity for Model Y at Gigafactory Berlin and Gigafactory Shanghai, with deliveries on track to start in 2021.

The Washington Put up documented that a few Tesla staff have been fired right after opting to stay home from the Fremont, California, manufacturing unit.

Tesla is now seeking a location for a second USA vehicle factory to build its Model Y and a new electric pickup truck, zeroing in on Tulsa, Oklahoma, and Austin, Texas.

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