Sales of Tesla models surpass expectations by 22 per cent

Tesla has far exceeded analysts' expectations in the second quarter of 2020, with the electric car company recording global sales of 90,650.

Analysts had predicted the company would sell 74,130 over the period.

Tesla's surprise announcement was 22 per cent above analysts' predictions, leading to yet another surge in its stock. Yesterday Tesla overtook Toyota as the most valuable car company in the world.

The sales figure is expected to result in four quarters of consecutive profit for Tesla, making it eligible for inclusion in the S&P 500.

Tesla's current valuation of US$224 billion would place the automaker in 18th position of 500 companies listed, sitting ahead of Bank of America, AT&T, and The Walt Disney Company.

However, inclusion in the S&P 500 should also mean a significant cash injection for Tesla over the next year, as Exchange Traded Funds (ETFs) and fund managers would have to buy into the company.

ETFs are popular financial instruments that allow individuals and firms to invest in the whole stock market – buying a slice of every company listed, rather than the traditional buying and selling of individual stocks by traders.

As Tesla would be newly listed on the S&P 500, these ETFs would need to readjust their portfolios by buying Tesla stock, and should mean a large inflow of money into the business.

MORE: Tesla overtakes Toyota as world's most valuable car maker
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