Tesla vehicle delivery record, shares soar to $80 billion

January 4 (UPI) — Shares of electric car maker Tesla surged again, breaking through the $450 mark at the start of trading Friday local time, giving them a market value of $80 billion,media reported. Tesla’s share price hit a new high after the company reported fourth-quarter and full-year 2019 delivery and production reports, showing it had set the latest delivery record.

Tesla vehicle delivery record, shares soar to $80 billion

In the fourth quarter of 2019, Tesla delivered 112,000 vehicles to customers in the United States and elsewhere. That number includes more than 92,000 Model 3s, proving once again the popularity of the electric car among car buyers worldwide. Tesla’s flagship Model S and Model X, though somewhat old, delivered more than 19,000 vehicles in the fourth quarter.

But more importantly, Tesla has also met its full-year 2019 target, which it estimates will deliver between 360,000 and 400,000 new vehicles for the full year of 2019. During the year, Tesla delivered about 367,500 vehicles worldwide, 50 percent more than in 2018. Tesla sold more cars in 2019 than in the previous two years combined.

Established carmakers have attacked Musk with the so-called “Tesla Killer”, but so far there have been no real competitors (whether it’s like the “iPhone killer” that Android makers said they did at the time). Gm’s all-electric Chevrolet Bolt plunged 47 percent in u.S. sales in the fourth quarter, and its full-year sales fell 9 percent.

On Tesla’s recent earnings conference call, Musk said he thought the upcoming crossover Model Y would sell more than the Model S, Model X and Model 3 combined, but gave no specific timetable.

“Delivery at the Shanghai plant should be the next catalyst for Tesla’s car sales growth,” Robert W. Baird analyst Ben Kallo wrote in a note. More importantly, the plant seems to be expanding faster than we expected. “

In 2012, the year Tesla launched its Model S sedan, the company delivered only 2,650 cars. Seven years later, that number reached 367,500, 138 times the number at the time. Analysts on average expect deliveries to reach 463,000 units by 2020, up 28 per cent year-on-year.

In those impressive results, Tesla’s shares opened at $436.92 a share before rising to $454 a share, giving it a market capitalisation of more than $80 billion. Tesla ended up 2.96 percent at $443.01, giving it a market value of $79.85 billion.

Tesla’s share price has experienced a slump and soaring in 2019. It fell to a two-year low after a second-quarter loss, but the stock has undergone an impressive recovery as third-quarter earnings results have been released. Tesla’s share price has been on an upward trend ever since, rising 84.6 percent in the past three months and 43.3 percent in the past 12 months. By contrast, the Standard and Poor’s 500 index has gained 11.9 percent in the past three months and 33.1 percent over the past year.

For now, all eyes will be on Tesla’s upcoming earnings report. Tesla is carrying huge momentum as the company reaches its 2019 target and ends the year with strong momentum. If Tesla finally meets or exceeds its fourth-quarter earnings forecast, the stock’s rally is likely to be just beginning. (Small)

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