TESLA DELIVERS SHOCK Q3 PROFIT, STOCK SHARPLY HIGHER
Tesla is currently trading at 304.24-higher by about 5.29% as compared to the previous closing. In Pre-market trading on Thursday, the stock was traded as much as 10.36% higher over yesterday’s close. The stock has cut some of its earlier gains after the opening bell.
Tesla reported strong Q3 earnings after the market closed on Wednesday. The earning reports also showed better-than-expected car sales and a faster timeline on its Model 3 production. The electric car maker said that its midsize Model 3 sedan, which it hopes to produce on a mass scale, was the best-selling car in the U.S. when measured by revenue and the fifth best-selling car in terms of volume.
Tesla reported adjusted EPS of $2.90, while markets had expected a loss of 19 cents per share. The company’s revenues for Q3 were $6.82 billion- above the market estimates of $6.33 billion.
The company posted net income of $311.5 million, or $1.75 per share, compared with a loss of $619.4 million, or $3.70 per share, a year ago. Revenue surged 70.5% from $4 billion a year ago.
On the technical front, the RSI is currently at 58.34% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger bands and is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with tight Stop Loss and Profit targets.
TRADE SUGGESTION-LIMIT BUY AT 302 TAKE PROFIT AT 310 STOP LOSS AT 298