Tesla Inc. has grown from Silicon Valley gadfly to the world’s most valuable car company in the decade since its initial public offering.
Tesla shares gained 5% on July 1st to end at $1,119.63, as investors await the company’s second-quarter sales numbers. The rally boosted Tesla’s market valuation to more than $207 billion and above Toyota Motor Corp.’s $203 billion market value.
Tesla is expected to report second-quarter sales this week, with analysts polled by FactSet expecting the sale of 72,000 vehicles in the quarter, of which 61,000 are Model 3s.
Tesla’s Fremont, California plant was closed for half the quarter. But the company ended the first quarter with about 14,000 cars in inventory, and its new Shanghai facility made vehicles most of the quarter.
The company will also release its Q2 earnings on July 22nd. Calling earnings will be hard. The second quarter will be marred by plant closure and restart costs. No one knows exactly if the electronic car giant will continue to be profitable during the pandemic.
All in all, Tesla shares have gained 163% this year, contrasting with losses of 4.3% and 10.9% for the S&P 500 index and the Dow Jones Industrial Average.
