Tesla increased sales
The sales of the most famous producer of electric cars in the world reached a new record in the first quarter of 2015. Within this period Tesla Motors sold more than 10.000 cars. The carmaker seems to be in line with the target of his CEO and Founder Élon Musk that expects to reach 55.000 deliveries this year.
Investors are very curious if the price of Tesla shares will do the same. The price of shares in fact jumped 8% after the announcement but it is far from the highest level that it reached last year. In September of last year the price reached 290 usd. Now that price is down 27% from this historic level and is trading around 210 usd. There was a big debate among investors about the valuation of this company when the price reached record levels.
Many were surprised about how it was possible to evaluate almost equally a company that sells only 30.000 cars per year like Tesla and a company that sells millions of cars like General Motor. Effectively the growing perspective for this company remains excellent and many funds continue to accumulate shares. Many investors are convinced that this company is the “Apple” of the auto sector and the prices may go up further.
Many carmakers around the world have revised in the upper side the figures of sales for the electric cars and also for the fossil fuel cars. That because of the cyclical nature of the sector. Tesla has also benefited from the growing demand for new cars as a result of the acceleration of the economy and the low rate of interest that push customers to borrow money for buying cars. Tesla continues to be the most luxurious car of the electric cars and the passion for electric cars is growing fast among the more affluent.
Now it remains to see if Élon Musk is going to reach his dream and produce 500.000 cars per year till 2020. The other curiosity is what will be the next target price for Tesla shares announced by Goldman Sachs.