Investors Generally Remains Optimistic about Tesla's Performance after Massive Losses Were Reported

Aug 07, 2017 Ι Industry News Ι Powersports Ι By Alan Lu, CENS
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Thanks to soaring orders for the two older models, the world-known electric car maker Tesla reported the revenues more than doubled, beating market expectations and refreshing its investors even if the firm just experienced massive losses as reported earlier.

As the market is looking forward to the debut of Model 3, Tesla has overtaken General Motors (GM) in terms of market capitalization several times.

Tesla's Q2 revenue stood at US$ 2.79 billion (NT$ 83.9 billion), capping the forecasted US$ 2.51 billion (NT$ 75.5 billion).

Last week, Elon Musk, CEO of Tesla, warned that the Silicon Valley based electric car manufacturer is very likely to face a 6-month “production hell”.

As the orders for the two older models on July has sharply surged by 15% compared to the firm's weekly average during the second quarter of this year, this has given Musk a good reason to believe in sharply elevated delivery volume of Model S and Model X to be seen during the second half of the year.

Albeit the cancellation of 63,000 orders, which has brought Tesla's current order number for Model 3 from 518,000 to 455,000, Musk said that the investors would not have to worry about whether Tesla can reach the production objective of 10,000 vehicles before 2018.

Market analysts think that as its recently reported loss is still within a reasonable scope, Tesla, in every part, has outperformed market expectations.

Bizlink, a Taiwanese wire harness provider to Tesla, also benefits from the customer's prosperity. Bizlink's year over year (YoY) revenue growth this year is forecasted to reach 50% and to maintain a double digits growth next year.

Elon Musk, CEO of Tesla. (photo provided by UDN)

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