Tesla’s Share Price Surges 18%
Tesla Inc.’s third-quarter profit and bullish outlook triggered an 18% jump in the company’s share price to its highest price in eight months.
Shares closed yesterday at $299.68, up $45, on Tesla’s strong third-quarter earnings report two days ago. The surge gave Tesla a greater market value than General Motors Co., making it the most valuable U.S. car company.
Investors are buoyed by evidence that Tesla is finally conquering the challenges of high-volume production. Their hope now is that the company, which has never posted a full-year profit, may soon do so.
Skeptics note that CEO Elon Musk has promised but failed repeatedly to meet performance targets. The speed with which Tesla erected its $2 billion assembly plant in Shanghai is helping to convince investors that the company is poised to join the ranks of mass-market carmakers.
But China watchers caution that the Chinese facility’s initial output will be about 1,000 cars per week—only one-sixth its intended capacity of 300,000 units per year.
Volkswagen CEO Herbert Diess suggests that Tesla has already reached major-league status. Yesterday he pointed to the success of the company’s $39,500 Model 3 electric sedan, declaring to reporters that “Tesla is not niche.”
Diess says VW has considerable respect for the carmaker, describing Tesla as “a competitor we take very seriously.”
Although the RAV4 has plenty of heritage in the small crossover segment, competition has gotten a whole lot tougher, so Toyota has made significant changes to the fourth-generation model.
The little car that could still can. And this time as a car that not only gets great fuel economy, but which has ride and handling that makes it more than an econo-box (and its styling is anything but boxy).
Ram Truck chief exterior designer Joe Dehner talks about how they’ve developed the all-new pickup. “We’ve been building trucks for over 100 years,” he says. “Best I could come up with is that this is our 15th-generation truck.”