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Tesla returns to profit, stocks soar and company becomes vehicle manufacturer …

by ace
Tesla returns to profit, stocks soar and company becomes vehicle manufacturer ...

Tesla shares surged more than 17% on Thursday after the electric car maker surprised with positive results and profit in the third quarter, fulfilling a promise made by President Elon Musk. Even so, there are still doubts about the company's long-term prospects.

As the stock rose, Tesla's market capitalization reached $ 53 billion, surpassing Chevrolet's owner of General Motors, at $ 51 billion, making it the most valuable car company in the United States.

She had held the post before in 2017, but lasted only 3 months and GM gained a substantial advantage.

Tesla posted quarterly earnings on Wednesday, citing improvements in operating efficiency and a reduction in manufacturing and material costs. Revenues in the quarter were $ 6.3 billion and earnings of $ 1.86 per paper, while analysts expected losses. The manufacturer had no profit since the last quarter of last year.

The company delivered 97,000 vehicles in the period, as expected by financial analysts.

The result triggered a strong dismantling of investors' short positions in Tesla shares (when the investor operates against the company). Tesla is the second highest-selling company in the US after Apple in terms of the total amount of money on sale.

With a $ 10.5 billion bet against Tesla, short sellers suffered paper losses of $ 1.4 billion on Thursday, erasing 70 percent of their profits in 2019, according to S3 Partners, a financial analysis firm consulted by Reuters.

Despite the rise, Tesla shares are down 10% this year.

In the past, investors have shown impatience with the company's serial failures to meet production and financial goals. The company's stock also still counts a significant decline from its nearly $ 390 high in 2018.

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