Tesla Holiday Earnings are Driving Stock Price

TeslaWhen we looked at Tesla (NASDAQ: TSLA) in mid-December, stock was trading close to $400 with strong momentum behind it. That momentum remains, and stock hit a high of $650 in yesterday’s regular trading session. Investors who purchased in December will be looking at significant gains. Those that didn’t will still see an upside in the stock.

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The electric vehicle maker reported earnings per share of $2.14 from the fourth quarter, beating the analyst estimate of $1.72. Revenue was $7.38 billion, compared to the estimate of $7.02 billion. The company announced that it expects positive income and cash flow to continue in the coming quarters, although it allows some exceptions for months where it ramps up production and launches new products. It now has an operational factory in China to complement its U.S. operation. It expects to build another factory in Germany by 2021.

In addition to the electric vehicle market, Tesla is also a major solar energy player. It installed 54MW of solar systems in the fourth quarter, an increase of 26% over the previous quarter. The solar business generated $436 million in revenue over the holidays.

Confidence from top financial firms will inspire investors who are still undecided on this stock. Canaccord Genuity increased its target price to $750 on Thursday, while Baird increased its target to $650. Wedbush has picked a target price of $710.

Tesla continues to prove that it is one of the world’s most innovative automakers. As it stands today, it’s arguably the best auto stock traded on the public market.

Key Data:

  • 1 Year Price Growth: 72%
  • YTD Price Growth: 18%
  • 3 Month Price Growth: 48%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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