Tesla Motors Inc (NASDAQ:TSLA) and Elon Musk can seemingly do no wrong. Following the announcement of earnings last quarter, the stock surged dramatically where it is trading up over 225% since April 1, 2013.
Tesla’s Surprising Q2
This quarter was meant to be considerably different with the consensus calling for a loss of 17 cents a share on $383 million in revenue. So much for the consensus, instead Tesla Motors Inc (NASDAQ:TSLA) reported a surprise profit for the second consecutive quarter. Tesla reported earnings of 20 cents a share for the second quarter on $405 million in revenue.
Corsair Capital, the event-driven long-short equity hedge fund, gained 6.6% net during the second quarter, bringing its year-to-date performance to 17.5%. Q2 2021 hedge fund letters, conferences and more According to a copy of the hedge fund's second-quarter letter to investors, a copy of which of ValueWalk has been able to review, the largest contributor Read More
Not surprisingly, in after-hours trading the stock jumped nearly 10% in minutes, and has gained $13.22. Hundreds of thousands of people have spent their mornings reading reports by analysts and financial pundits alike that suggested that there would be an incredible opportunity to short Tesla Motors Inc (NASDAQ:TSLA) following the reporting of earnings for the quarter. Hopefully, most didn’t set themselves up for financial ruin after taking this advice to heart.
Additionally, 24% of Tesla Motors Inc (NASDAQ:TSLA)’s stock is owned by traders and investors looking to short the stock, that will also have to wait.
Investors are now focusing on Tesla Motors Inc (NASDAQ:TSLA)’s ability to meet rising production goals and ramp up output in the coming year, and for those who believe in Tesla and own its stock, today was certainly a banner day.
In the last three minutes, Tesla Motors Inc (NASDAQ:TSLA) has gone from a 9.7% to a gain of over 11% in the last 20 minutes.
I can hear Don Vickrey asking someone to pass the salt right now, in order to easier eat his words.
Following the Q1 profit, Donn Vickrey at Gradient Analytics said “the company’s results have been driven by nonrecurring boosts and accounting gimmicks, all of which are either unsustainable or purely cosmetic,” giving the company’s earnings an ‘F’.
In today and yesterday’s trading, Tesla Motors Inc (NASDAQ:TSLA)’s stock had been downshifted by investors, now the silent car is pulling away trading up over 15% since earnings were announced.