Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Tesla share price set to jump higher as car sales soar in South Korea

Elon Musk’s electric car company continues to trade higher after a strong second quarter that showed impressive sales figures, particularly in South Korea.

Tesla Source: Bloomberg

Tesla shares have soared in 2020 and investors can expect the electric car maker’s stock to continue on its upward trajectory after the company delivered a strong set of first quarter (Q1) results that showed a signifcant jump in sales in South Korea.

In fact, South Korea was a key market in helping the electric car maker exceed analysts’ expectations in Q2, with the country helping to make the Tesla Model 3 one of the best-selling vehicles on the market.

The popularity of the Model 3 in South Korea comes down to affordability, with the vehicle selling for $26,000 (₩31 million), helping Tesla shift more than 4000 in the East Asian nation during Q2.

Sales of the Model 3 were also supported by the South Korean government’s generous electric vehicle incentive scheme, which provides up to ₩26 million (circa $21,000) to citizens looking to go green.

Tesla closed at $1389 per share on Tuesday, representing yet another new all-time high for the stock, with company’s share price soaring more than 220% year-to-date.

Tesla records strong Q2 sales despite Covid-19 challenges

Looking more broadly, Tesla produced 82,272 vehicles in the Q2, with 90,650 deliveries. That included Model S/X production of 6,326 with deliveries of 10,600, and Model 3/Y production of 75,946 with 80,050 deliveries.

Deliveries came in well ahead of analyst expectations of a little over 70,000, with that feat made all the more impressive by the fact that Tesla’s Fremont factory was closed for a large portion of the quarter due to the coronavirus pandemic forcing the state of California to impose lockdown restrictions.

Tesla’s profitability remains a question mark

This latest rally is further proof of how Tesla’s stock price ‘defies underlying fundamentals and even future concerns that could dent growth and profitability’, including a resurgence of Covid-19 and geopolitical tensions, according to Monte Safieddine, market analyst at IG.

‘Whether one calls it a car company or a tech company; so far when it comes to Tesla’s share price, fresh record highs are being posted at a time when transportation is dented, and car companies are hurt,’ he added.

The speculative nature of the stock also means that ‘investors hunting for dividends won’t find Tesla an attractive option’.

‘But that also means price gains will be crucial in enticing investors into the volatile market, for any price increase that is clearly unjustified – if not, speculative - will scare away those looking for a healthy balance sheet and potential consistent returns, especially if liquidity woes return to the financial markets,’ Safieddine added.

How to trade stocks with IG

Looking to trade Tesla and other stocks? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs in a few easy steps:

  1. Create an IG trading account or log in to your existing account
  2. Enter ‘Tesla’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access
Learn more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.