Tesla's Better Than Expected Q1 Dominates Aftermarket Trading
Tesla Is Tearing It Up In Evening TradingTesla (TSLA) waited until after the final bell rung in order to announce their earnings for Q1 of this year. When news broke that they did better than expected, the NASDAQ rallied and sent Tesla stock soaring by 2%. As of right now, Tesla is trading up 4.57 points at $235 per share. This is coming on the back of a trading day that saw a -2.52 point drop in share prices, ending regular trading at $230.43. It's also down from aftermarket highs of over $242.
New Products Drove Q1 PerformanceA string of new products helped Tesla exceed performance estimates in the first quarter.
Still Losing Money, Just Losing LessThe electric car company is still losing money, and producing less than 15,000 cars per year, but it is performing better than expected. Losses were lighter this quarter -- less than -$0.49 per share -- than projected, and the company is ramping up to sell and distribute the Model X's that have been pre-ordered.
In a lot of ways Tesla is still a fledgling car company. Even though consumers have quickly grown used to the brand, Tesla as a company hasn't yet become the mature, reliable car corporation that its investors want it to be. The business is still fighting through the awkward middle-ground, where it has big-company ideas and only a mid-sized capacity for execution.
High Volume TradingAftermarket volume was huge, with over 1 million shares exchanged, and the majority of them buy orders. To put those numbers in perspective, that would be heavy standard trading for Tesla, let alone aftermarket. As trading begins to calm down tonight, it looks likely that Tesla will post a strong opening tomorrow morning.
Stock Set To Open Big TomorrowShares of Tesla could open as high as $239, but will likely open at a more realistic valuation of $234. That still a gain of 4 points over regular trading, and it comes on top of an evening where everyone on Wall Street was looking for a piece of the stock. Look for this trend to continue into tomorrow, but don't be surprised with an eventual Tesla slowdown over the sluggish summer. Until the car company can deliver on a few more of the models it has promised, it's still a risky pick.
Published on May 7, 2015By Aaron Phillips
Posted in ...Market Commentary