During the session on Tuesday, March 10, 2020, the Tesla Group announced that it has passed the one million vehicle production milestone. Following this announcement, the share price of this value was able to gain many points during the session as it is one of the key stages in the group's development. We propose you to discover here a little more details about this news with some practical information.Trade Tesla shares!
It was Elon Musk, current CEO of the Tesla Group, who made this important announcement on Tuesday evening. Musk announced in an official press release that his company will produce more than one million vehicles.
This announcement has not remained without effect since investors have massively welcomed this new information as proof of the success of this company on the electric car market, which has been booming in recent years.
One may indeed wonder about the medium-term consequences of this announcement. Is it thus possible that market deliveries for the first quarter of 2020 will ultimately exceed expectations?
It is thus on the basis of this anticipation that the majority of investors opted to take a buying position on Tesla shares this morning since the stock was up by more than 4% at the opening of the Nasdaq session.
Looking at the different market sources, the current consensus is that the U.S. electric vehicle manufacturer is expected to sell just over 100,000 vehicles in the first quarter of 2020. This performance would enable the group to reach the level of 500,000 vehicle deliveries for the whole year. It goes without saying that crossing this new symbolic threshold is a highly positive and optimistic indicator for investors.
To better understand the interest of this significant increase in the Tesla Group's production, we recall that the company had delivered 367,500 vehicles in 2019 and had also claimed a little less than 245,240 deliveries for the 2018 fiscal year. In 2017, this figure was even lower with only 101,312 vehicles delivered.
Based on the growth of Tesla's business over the past few years, it is therefore more than likely that the company will succeed in selling more than one million vehicles each year, starting in 2023.
This new sign of Tesla's financial and economic health is therefore a strong buying signal on this stock which should continue to interest the market for a few more years. However, care will be taken to check the day's technical analysis before taking any position in order to avoid incurring losses due to strategic profit taking.