Tesla shares soar with a £100 billion bonanza as profits soar
More than £100 billion was added to Tesla’s value last night as the promise of a strong sales boost sent its shares soaring.
In an update welcomed by Wall Street, boss Elon Musk reported an 8 percent rise in third-quarter profits to £1.9 billion, following an 8 percent rise in revenues to £19.4 billion.
Musk also predicted that sales of Tesla electric vehicles could rise by as much as 30 percent next year as cost cuts allowed prices to be lowered to boost demand.
Tesla boss Elon Musk reported an 8% rise in third quarter profits to £1.9 billion, following an 8% rise in sales to £19.4 billion.
The comments reassured investors that the billionaire tycoon was still focused on the core business of selling electric cars, despite distractions including his campaign for Donald Trump in the US presidential election.
Shares rose 22 percent, boosting Tesla’s value by £105 billion to £630 billion, the company’s biggest single-day gain in 11 years.
It also added £14 billion to the value of Musk’s stake, which was worth £82 billion last night.
“He certainly seemed more passionate and invested in it this time,” said Jessica Caldwell, head of insights at car research and purchasing website Edmunds.
But Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management and a prominent Tesla investor, called on Musk to do more.
‘They were good days when Elon slept in the factory. He was working there every day. He doesn’t go into Trump meetings about anything he could do,” Gerber said.
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