Updated February 01, 2019 18:57:56 Tesla has just hit another milestone in its transformation from an electric car company to a fully electric company, with a profit of $2.4 billion.
The company reported a net loss of $1.6 billion in the second quarter, which it said was driven by lower-than-expected sales of its Model S sedan.
Tesla has also become a more attractive destination for investors as its stock has soared in recent months.
Its shares have been up more than 80 per cent this year, with the most recent increase topping $10,000 in December.
Tesla has more than 2,300 employees in the US and China.
The stock hit a high in late 2016 when it was trading at $2,900.
Shares rose sharply after Tesla’s Model S launch, as the car was seen as a breakthrough for the future of car sales.
Since then, the company has seen a gradual rise in profit, which was boosted by the Model X crossover SUV.
Tesla also saw its sales increase, with sales of the Model 3 sedan up nearly 50 per cent in the first half of this year.
Tesla stock rose $12.70 to $36.40, while the S&P 500 index was up 4.4 per cent.
Despite the company’s earnings success, the stock has seen some investors question its value, as many analysts question Tesla’s ability to keep growing as the company struggles to generate revenue.
Tesla’s stock is now up 15.3 per cent since its IPO on June 16, 2018.
It is one of the biggest performers on the S & P 500, which is up 3.7 per cent so far this year and has risen more than 100 per cent over the past 10 years.
“The market is taking notice of Tesla and it is driving the company up.
The price has been on the rise and investors are willing to pay,” said Mike Schulman, analyst at Wedbush Securities.
There are also concerns that Tesla’s dominance of the global auto market could be waning, with competition from Chinese companies including Ford, Nissan and others.
Chinese company, Zhejiang Semiconductor, announced on Monday it had signed an agreement to buy a controlling stake in Tesla, a move that is expected to give it control of the entire global manufacturing process.
On Tuesday, analysts said the market is expecting the stock to continue to rally over the next few months.
Analysts expect Tesla to hit the $70-70 mark in the next 12 months, but it could fall below $70 if it continues to generate disappointing earnings.
Investors are also watching the Chinese stock market closely, as a number of Chinese companies have recently signed deals to buy Tesla shares.
Some analysts say that if Tesla is unable to increase its revenue, the share price could tumble even further.
In 2017, Tesla recorded a net profit of about $9 billion, which equates to a profit per share of about 7.4 cents.