Connect with us

Finance

Tesla recovers early losses to finish up 1.94%

Published

on

[block]Tesla created headlines last night when they revealed production numbers of the Model 3’s. Musks target was 1600 by the end of September, they managed 260.

Shares fell over 2% in early trading on the news, however they recovered during the day to finish up 1.94%. Why the wild ride? It seems that investors liked the fact that YoY production was up 4.5% to 26,150 total vehicles. Detractors point to the fact that Model 3 production is limited, and that Tesla is having a harder than anticipated time ramping up production due to manufacturing bottlenecks.

Much of Tesla’s elevated stock price is based on the future, a big bright future if you listen to Elon Musk. Their market cap is $58.1B, but their PE ratio is -71.75 and EPS is -4.85. That’s right folks, a company worth over $58billion actually loses money, a lot of it.

Investors have been quick to dismiss disappointing news on the belief that Tesla will overcome whatever obstacles they face in the manufacturing process. They’d have you believe that these are just teething problems as the company transitions from a good idea into the mass production of automobiles.

Who knows, they might be right.

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending