Tesla started 2020 on a high reporting that it has delivered 367,500 vehicles in 2019. This exceeds the forecast of 360,000 deliveries made in October. Wall Street exhibited a renewed optimism in Tesla, in contrast to the damp sentiment of early 2019, driving Tesla’s stock to a high of ~ $425 a share.
Tesla’s stock is up more than 50% from the year before. This impressive run-up is despite the stock almost losing half its value in the initial months of 2019.Tesla now boasts of a current market cap of $80bn. That’s greater than 50% of General Motors!
Tesla’s performance in 2020 will be impacted by its performance on the following factors:
– Ramp up of production from its factory in Shanghai. Tesla had recently secured $1.6bn in financing for its Gigafactory in China. Deliveries from its Gigafactory are expected to start as soon as this week
– Performance of deliveries of Model Y. Model Y is the new large model from Tesla which had received a fair bit of negative sentiment in the early 2019.
– Continued performance of orders and deliveries on its current models
Overall, Tesla is off to a strong start and we will be waiting to see how the 2020 story unfolds.
