After publishing better than expected quarterly results, Elon Musks company literally skyrocketed reaching new record highs. That is what news of profitability together with promising investors sentiments may do to a stock. However, it does not mean that we are going to see the same trend for very long. Without any doubt, this growth may be partially contributed to speculators (well who is not a speculator today).
Other important reasons were rising deliveries and a China factory that came online faster than expected, vowed to increase its global vehicle sales by more than a third in 2020—to “comfortably exceed” half a million units, up from 367,000 last year.
Now, all these are very beautiful numbers but let us be honest with each other. China has its own electrical cars + Coronavirus is still there > meaning that Chinese economy would show worse results than expected > car industry is suffering despite IMF suggesting its improvement.
Investors believe that Tesla will continue to dominate the electric vehicle industry and to improve performance in 2020 and beyond. It is difficult to predict whether it will actually happen or not, but I would recommend to check out Netflix history. Tesla needs to stand out from its competitors and offer something no one else does, otherwise soon we are going to see one more rekt.
Other important reasons were rising deliveries and a China factory that came online faster than expected, vowed to increase its global vehicle sales by more than a third in 2020—to “comfortably exceed” half a million units, up from 367,000 last year.
Now, all these are very beautiful numbers but let us be honest with each other. China has its own electrical cars + Coronavirus is still there > meaning that Chinese economy would show worse results than expected > car industry is suffering despite IMF suggesting its improvement.
Investors believe that Tesla will continue to dominate the electric vehicle industry and to improve performance in 2020 and beyond. It is difficult to predict whether it will actually happen or not, but I would recommend to check out Netflix history. Tesla needs to stand out from its competitors and offer something no one else does, otherwise soon we are going to see one more rekt.
Views and opinions for informational purposes only. Remember, past performance is no guarantee of future results.