Tesla News & In-Depth Market Analysis
Tesla’s stock skyrocketed by 12% in after-hours trading, fueled by robust third-quarter results.
Fundamental Synopsis:
Tesla Inc. outperformed Wall Street’s expectations for Q3 earnings and hinted at a modest uptick in vehicle deliveries for the year, showcasing a resurgence in demand for its electric vehicles. The company’s resilience in navigating persistent supply chain disruptions while sustaining solid sales momentum was evident.
On Wednesday, Tesla reported adjusted earnings per share (EPS) of 72 cents, outstripping the median analyst prediction, which broke a streak of four consecutive quarters of missed earnings targets. Furthermore, it confirmed its commitment to commencing production of more affordable models in the first half of 2025 and predicted a 50% increase in production volume next year compared to 2023.
Tesla’s shares surged as much as 12% in post-market activity on Wednesday, even though the stock had been down by 14% for the year in regular trading. This dramatic rebound signifies a powerful market response to Tesla’s latest earnings announcement and its forward-looking growth outlook.
The Q3 earnings report unveiled several encouraging developments. Tesla’s revenue for the quarter reached $25.18 billion, up from $23.40 billion in the same quarter the previous year. Additionally, earnings per share surpassed expectations at $0.72, compared to a consensus estimate of $0.60. Gross margin came in at an impressive 19.8%, exceeding the forecasted 16.8%, further underscoring the company’s strong performance.
Tesla Technical Analysis – Daily Chart:
Technical Breakdown:
Tesla is presently moving within an upward trading channel, holding a position above all key Moving Averages (SMA). The Relative Strength Index (RSI) resides in a buying zone, while the Stochastic Oscillator indicates a continuation of positive momentum.
- Immediate Resistance Level: 244.00
- Immediate Support Level: 225.00
How to Trade Tesla:
Following a sharp ascent, Tesla encountered resistance at its previous highs, which caused a temporary retreat. Nonetheless, the stock has rebounded assertively from a support zone, signaling renewed strength. After such a vigorous rise, a slight pullback is anticipated for a retest before the upward momentum continues.
Trade Recommendation:
- Limit Buy: 227.88
- Target Profit: 252.20
- Stop Loss: 214.01