Tesla profits

Tesla Earnings In 2019 & 2020 — What Can We Learn? Plus, Happy New Year!

There have been many pieces on Tesla stock’s rocket run over the last month. According to stockcharts.com, Tesla went from a low price of 328.69 on December 2nd, 2019, to a closing price of 430.38 on December 27th, 2019 (it has dropped a bit since then). This is a phenomenal return of 30.9% gain in less than 30 days. I speculated earlier on many reasons why it happened. It turns out, though, the reason may be very simple. Wall Street analysts are expecting Tesla to earn higher profits in 2019 and 2020 compared to what they thought 3 months ago.

Tesla: Scale Today For Profits Tomorrow, Or Profits Today For Scale Tomorrow?

Editor’s note: Contrary to some core points in the article below, Elon Musk has said on a few occasions that Tesla’s more or less continuous profitability will not slow Tesla’s growth — that it’s still growing as fast as it can. We also have a Tesla financials deep dive coming in a couple of days that should help anyone interested in that aspect of the business to walk through the numbers in detail yet hopefully without getting lost if you don’t have an MBA or accounting degree. In any case, it is a common concern among Tesla supporters that a focus on achieving quarterly profits could slow Tesla’s overall growth. This author chimes in on that topic through a bit more than 1,000 words.