(Bloomberg) – Tesla Inc.’s stock price rose above $ 1,000 again after Chief Executive Officer Elon Musk suggested that the electric car maker could avoid a loss in the second quarter.
“Breaking down even looks really tight,” Musk wrote in an email to employees obtained by Bloomberg and first reported by Electrek. “It really makes a difference for every car you build and deliver. Please do your best to ensure victory!
Tesla shares rose 5.2% on Monday to close at $ 1,009.35. The stock has shot up 141% this year, kicking off its market capitalization to compete with Toyota Motor Corp., the world’s most valuable automaker by that move.
Musk, 49, has routinely sent emails to gather troops at the end of a quarter, though Tesla has not always lived up to the expectations set by his internal memos. The company reported a record 97,000 deliveries for the three months ending September, below the 100,000 mark it emailed to staff days earlier.
If Musk is on the mark this time, the automaker may qualify for inclusion in the S&P 500 index. To be eligible, the company must report positive quarterly earnings based on generally accepted accounting principles.
While analysts on the average Tesla project will lose nearly $ 2 a share based on GAAP this quarter, higher-than-expected vehicle deliveries would make profitability a “less radical” idea, wrote Dan Levy, analyst at Credit Suisse. , in a report on Monday. In addition to underestimating volume, the company can exceed expectations by reducing expenses, increasing sales of regulatory credits, and recognizing more revenue related to its automated driving system.
“Expectations are high, but it is not clear to us how the actions will be challenged,” Levy wrote. “With an S&P increase expected in 2020, it would be further support for the action.”
(Updates with details of the S&P 500 in the fifth paragraph).
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