What happened
Electric car maker shares Tesla (NASDAQ: TSLA) it jumped higher on Thursday, rising as much as 6.1%. Stocks, however, fell after their highest initial rise. At 10:50 amEDT, the stock rose only about 2%
Stock price volatility on Thursday follows Tesla’s second-quarter earnings report on Wednesday afternoon, which greatly impressed analysts. But with stocks increasing by more than 500% in 12 months, there are good reasons for stocks to take a breather.
Image source: Tesla.
And that
Tesla’s top and bottom performance for its second quarter was well above analysts’ average forecast. Adjusted earnings and earnings per share were $ 6.04 billion and $ 2.18, respectively. However, analysts expected revenue of $ 5.37 billion and adjusted earnings per share of $ 0.03.
However, one analyst noted that the company’s stronger-than-expected earnings per share for the period were driven by sales of zero-emission regulatory credits. However, the results were impressive given that the company’s main automaker was closed for approximately half of the quarter.
However, arguably a strong second quarter was already included in Tesla’s stock price, which explains why a drop in share price may have been brief on Thursday.
Now what
Looking ahead to the rest of the year, Tesla’s management is optimistic. The company resumed its guidance for half a million vehicle deliveries this year after withdrawing that view at the time of its first-quarter update, when the Tesla factory in California closed.
