Tesla recently declared its quarterly profit and said it is planning to sell nearly 500,000 vehicles in 2020; the announcement resulted positively as the company’s share price surged vigorously in late trading on Wednesday, sources said.
The California-based electric carmaker reported $105 million profit in the last quarter coupled with revenue of $7.38 billion. Company quarter profit and revenue rose higher than their estimates pushing share prices more than 7% in after-hours trading, according to the reports.
The company was being questioned for its long-term viability, but its recent development brought a considerable period for Tesla. The company registered a more than 120% hike in share price as Tesla received remarkable earnings in the third quarter.
Tesla is likely to sell more than half a million cars this year, showing appreciation for the escalated production of Model 3 cars in the Shanghai production facility. Production of the Tesla Model Y in California is expected to boost faster deliveries in 2020, the company said in a statement.
A rapid climb in Tesla’s share price has deeply benefited its share market status, ranking higher than Ford and General Motors. Earlier this month the company’s value crossed $100 billion, it closed at $104.7 billion before the month-end. Tesla sold nearly 367,500 cars last year; the number grew by 50% of its 2018’s sales.
If Elon Musk manages to retain a company worth above $100 billion till July 2020, he would pocket $350 million as a bonus. However, skeptics have kept doubting Musk’s ability to satisfy his business aims. 15% of Tesla’s shares held by those short-sellers, who are wagering that the company share will drop in the near future.