American automotive and energy company, Tesla, delivered a robust third-quarter earnings report after the close of trading on Wednesday, notching a surprise profit and explaining to shareholders that it is ahead of schedule with creating a fresh factory in Shanghai. Shares of the company rocketed over $300 a share, as much as 17% higher in after hours, placing them at their highest price since February.
As of Tuesday, analysts were expecting a loss of 46 cents per share and revenue of $6.42 billion for Elon Musk’s electric car and renewable energy company, according to data compiled by FactSet.
In its Q3 2019 Update, Tesla said:
“Gigafactory Shanghai was built in 10 months and is ready for production, while it was ~65% less expensive (capex per unit of capacity) to build than our Model 3 production system in the US.”
Meanwhile, the much debated Model 3 is rumored to be more profitable, as the company also said in its Q3 report: “Despite reductions in the average selling price (ASP) of Model 3 as global mix stabilizes, our gross margins have strengthened.”
After forming a low in May, Tesla stock has been in an uptrend since then, and is currently trading around $255 a share.
Investors looking to use ETFs to play Tesla can look into the iShares Self Driving EV And Tech ETF (IDRV).
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