The bull case for Tesla is back.
The California carmaker posted a second consecutive profitable quarter (pdf) today, adding another billion to its $6.2 billion in cash reserves. And most of the credit belongs to Tesla’s Model 3 overseas—despite slowing US sales growth, nearly half of the 300,000 of so deliveries in 2019 were to Europe and China.
After years of flirting with bankruptcy, Tesla is posting more consistent profits, cutting costs, growing revenue, and restraining its chief executive Elon Musk from threatening the company’s solvency. The stock, up 12% in after-hours trading, is now far outpacing analysts’ expectations following two years of middling performance.