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Wednesday, December 2, 2020

Tesla hits new sales record despite pandemic

Tesla recorded $8.7bn in revenue in the three months leading in to September, a fifth quarter in a row of profit.

Deliveries of Tesla cars rose 54% despite the pandemic induced recession, with shares in the company quadrupling in value.

Nearly half of the 320 000 cars Tesla delivered this year were delivered in the last quarter, boosting the quarterly profit to $311 million.

Tesla has long been criticised for failing to fulfil profitability promises, so this recent streak of sales is even more impressive contrasted with a global recession in nearly every other industry.

Of course the impacts of the recession are specific to the effects of Covid-19, one industries gain comes at the expense of another.

In this instance in order to comply with government advice regarding public transport and staying Covid safe, many people have ditched the trains and buses and invested in personal transport instead.

Tesla Ready To Increase Production At Fremont Factory
Source.

So whilst Tesla is making some of its best sales in years, public transport is suffering heavily, TFL for example took on £505m in additional debt during lockdown.

Meanwhile, car sales in the UK rose 17% in the same period for both used and new vehicles.

According to a survey conducted by Close Brothers Motor Finance, some 95% of UK car dealers are positive their businesses will survive the impact of the pandemic.

Great news for the automotive industry but demand has began to push up prices with second hand cars climbing 2.1% from August to September, compared to a 1.4% fall same time last year.

Average petrol prices also increased across the same period, rising from 113.1 to 113.3p per litre.

This is cheaper than the same price last year of 127.3p but rising fuel costs are another reason why many are choosing to buy Tesla.

For example the cost of fully charging a Tesla Model S is just £12 and comes at a time when the idea of a ‘green recovery’ is increasingly popular in Britain.

Despite facing significant competition as larger car giants such as Toyota begin to capitalise on the ‘electric car boom’, Tesla remains as the highest valued car company in the world.

Sources:

https://www.bbc.co.uk/news/business-54636005

https://www.bbc.co.uk/news/technology-54244612

https://www.bbc.co.uk/news/business-54626729

https://www.theguardian.com/business/2020/aug/20/uk-car-dealer-sales-rise-as-covid-drives-people-from-public-transport

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