Tesla: shares rise after better-than-expected results
(CercleFinance.com) - Tesla reported quarterly results that came in much better than expectations.
As a result, its shares rose by about 4% in early trading on Thursday.
The electric carmaker posted a quarterly net profit for the fourth consecutive quarter, reporting earnings of 104 million dollars for the past three months.
Deliveries of Tesla vehicles in the quarter fell 5% to 90,891 units, resulting in revenue also falling 5% to 6 billion dollars.
However, analysts pointed out that the last quarter was helped by a rise in regulatory tax credits that the Silicon Valley car maker receives for selling "green" vehicles.
"While we'd argue a heavy dose of regulatory credits reduces the quality of the beat vs. the headline, it was nevertheless a solid result," Credit Suisse analysts said this morning.
"More importantly, the growth narrative remains intact - crucial, given the market is leaning heavily on growth and momentum," the broker added.
The shares rose around 2% after the report, giving the company a market capitalisation of over 300 billion dollars, which underpinned rumours that the Tesla share will soon join the S&P 500, the benchmark of US fund managers.
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