Tesla Inc (NASDAQ: TSLA) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company turned a profit for the first time, surprising analysts and investors alike. With the profit in mind, excited investors are sending the stock screaming for the top. Today, we’ll talk about:
- The earnings report;
- what we’re seeing from TSLA stock as a result; and
- what we’ll be watching for ahead.
TSLA Reports A Surprise Profit
As mentioned above, Tesla is having an incredibly strong start to the trading session this morning after reporting its earnings for the third quarter, surprising investors and analysts alike with profits. Here’s what we saw from the report:
- Earnings – In terms of earnings, TSLA did overwhelmingly well. During the quarter, the company said it generated adjusted earnings per share in the amount of $2.90. That figure blew analyst expectations of a loss of $0.15 out of the water.
- Revenue – Revenue also proved to be a big hit for the company. During the quarter, analysts expected that the company would generate revenue in the amount of $6.32 billion. However, the company actually generated revenue in the amount of $6.82 billion, once again beating expectations.
The surprise profit ultimately came from the company’s Model 3 vehicle. In fact, TSLA said that the Model 3 was the best selling car in the United States by revenue and the fifth best selling care in the United States in terms of volume.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Tesla, the news proved to be overwhelmingly positive. Not only did the company beat analyst expectations in the most recent quarter, it produced a surprise profit. So, it comes as no surprise that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:10), TSLA is trading at $318.45 per share after a gain of $29.95 per share or 10.38% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TSLA. After raising the price of the Model 3 by $1,000 yesterday, the question is whether or not the company will be able to keep sales growth on the rise. Nonetheless, things are looking good at the moment. We’ll continue to keep a close eye on the news and bring it to you as it breaks!
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