While the novel coronavirus pandemic related economic and business hit has impacted the global auto makers. The impact has not been as bad as the other for the United States based electric auto maker Tesla in terms of the company’s sales and production.
During the latest completed quarter, the electric car making company delivered 90,650 cars to customers, Tesla said on Thursday. That was however 5 per cent lower than what the company had delivered I the same period a year ago. However that number for Tesla was far lower than the drops of 30 per cent or more in deliveries as reported by most of the major other auto makers as reported on Wednesday.
Compared to Tesla’s first quarter the sale of 88,400 cars, the second quarter sale of the company was higher.
However the Cvoid-19 pandemic related lockdown and restrictions caused a 20 per cent quarter on quarter drop in production of the company. Tesla was forced to shut for two months at a stretch production at its factory in Fremont, California, because of the pandemic related lockdown.
In a call with investors in late April, Tesla CEO Elon Musk called the stay-at-home orders “fascist” as he was very vocal in his opposition to the government’s orders to keep the factory closed down to prevent the spread of the pandemic.
Tesla even filed a lawsuit in middle of May to urge the courts to order reopening of the factory.
For those investors and analysts who were hope that Tesla would be able to maintain its path of profitability despite the Covid-19 pandemic, the very good and solid sales number was good news. After the reporting of the sale figures, the shares of the company climbed further after they had surged by 6 per cent in premarket trading before the sales and production release.
The recent surge in the share price of the company and increased investor confidence in the company has made Tesla the most valuable car maker of the world based on market capitalization on Wednesday. In the process, the company surpassed Toyota, which was till now the most valuable company in the world. However compared to the annual sale of most of the other major car makers such as Toyota, GM, and Ford, the sale of Tesla is just a fraction. In fact in 2019, Tesla’s total annual sale of cars was just one 25th of the total cars sold by Toyota.
(Adapted from CNN.com)