Strong Q2 results from Tesla have some industry observers calling it the new Bitcoin.
$TSLA is the new Bitcoin
— Ramp Capital (@RampCapitalLLC) July 22, 2020
Records show Bitcoin first traded for $0.003 in March 2010 on the now-obsolete BitcoinMarket.com exchange. At today’s price, that’s over 300,000,000% gains since that date.
Tesla stock has some way to go to top Bitcoin’s performance. But being up 9,300%, since going public in June 2010, is still an impressive motion towards that goal.
Source: google.com
And with Tesla being one of the stand out stocks of 2020, it’s natural to draw comparisons to Bitcoin. However, the question is, can Tesla continue climbing higher?
Tesla Beats Analysts’ Expectations
The release of Tesla’s Q2 results shows the company performed better than expected. Investors responded by pushing the stock price up 4% during pre-trading hours.
Estimates compiled by industry analysts, Refinitiv showed Tesla beat expectations on share earnings and revenue. What’s more, having also reported its first full year of profitability, Tesla now qualifies for inclusion on the S&P500 index.
- Earnings: $2.18 (ex-items) vs. 3 cents per share, expected.
- Revenue: $6.04 billion vs. $5.37 billion, expected.
- Net income: $104 million.
Nicholas Hyett, an analyst at Hargreaves Lansdown, attributed the performance to buoyant sales in China, as well as software accounting for more of the firm’s revenues.
“increasing sales in China, which look to be relatively higher margin thanks to the lower manufacturing costs, and increased recognition of software revenues.”
To bring about long term profitability, Tesla CFO, Zachary Kirkhor said the firm has set out a strategy to reduce vehicle production costs, at the same time, focusing more on