Tesla, the world’s most popular electric car brand has just announced their surprising earnings and profitability. Their stock surged up nearly 21% on Thursday as Tesla experienced their first profitable quarter.
The automaker is based in California, where innovative cars have been manufactured for over a decade. Tesla has experienced financial setbacks over the years, but the rising stock could foreshadow a successful close to 2019.
Chief Executive Elon Musk has been a controversial leader, often feuding with investors, but delivers on his products. Musk has “promised a 2020 rollout of a cheaper SUV and more self-driving technology to stay ahead of larger rivals rushing into the premium electric vehicle market he created” (Reuters).
“The third-quarter results are an important milestone for Tesla and redemption for Musk who had to step down as chairman after a series of scandals and investor doubts about Tesla’s ability to withstand competition from larger, better capitalized global rivals” (Reuters).
Tesla has remained at the forefront of innovation of electric cars but faces competition from other leading luxury brands who look to expand their models to electric and self-driving vehicles in the coming years.
Tesla aims to expand their electric vehicles to semi-trucks, pickup trucks, and more affordable SUVs. Their recent profitability may induce investors to help fund these lofty projects.
While the car company continuously strives to produce new models and revolutionary ways to combat car emissions and increase the amount of electric cars on the road, they have not been a profitable company until now.