Tesla trades above $200 amid reports suggesting strong sales
While it may be too early to know if investor sentiment on Tesla Inc. has taken a positive turn after the stock’s disastrous run last month, June has begun on a much more optimistic note.
Shares of the electric vehicle maker rose for the third straight day on Thursday, trading comfortably above $200. The stock has gained more than 12% to start off June, following a 22% plunge in May, prompted in part by heightened concerns about flagging demand and the company’s cash flow.
Now a growing chorus of analysts and press reports are suggesting that Tesla’s deliveries to customers may have started to strengthen during the second quarter. The latest came from Electrek, which on June 5 cited unidentified people to say that the automaker has reached record sales numbers in North America.
According to the report, Tesla has delivered 33,000 vehicles in North America this quarter, and 2,512 cars so far this month. Tesla also offered significant bonuses to sales and delivery employees if they reach the company’s goal of delivering 33,000 vehicles in North America in June, Electrek said.
The report follows comments from JMP Securities analyst Joseph Osha, who on Wednesday quoted numbers from InsideEVs website to say that demand for the Model 3 sedan continued to be strong. The analyst raised his estimates for total second-quarter deliveries to 97,000 from 90,500 units.
Earlier in the week, Morgan Stanley analyst Adam Jonas said Tesla’s deliveries and revenue were still expected to jump in 2020 as the Model 3 enters new markets, including China, and the manufacturer refreshes its Model S car and Model X sport utility vehicle. There will be a “significant sequential improvement” in demand as soon as this year, also bolstered by expansion in Europe, more leasing and price cuts, Jonas said.
Tesla shares gained as much as 7.3% to $211 on Thursday.