Tesla (TSLA) Shares Surge by 11%
As shown by Tesla's stock chart, trading closed below $213.50 yesterday. However, following the main trading session, the company reported its third-quarter earnings:
Earnings per share (EPS): actual = $0.72, expected = $0.59
Gross revenue: actual = $25.46 billion, expected = $25.18 billion
Additionally, Tesla forecasted a sharp increase in vehicle sales, assuring investors that CEO Elon Musk remains focused on expanding the company's core electric vehicle business.
According to Reuters, this earnings report positively impacted investors who were previously concerned about:
Profit margins shrinking due to price cuts.
Musk potentially being distracted by new projects like the Cybercab robotaxi, Robovan, and humanoid robots (Optimus Gen), which were unveiled during the "We, Robot" event that caused a TSLA stock drop on October 11.
As a result, Tesla's pre-market share price shows a rise of over 11%, indicating that today's trading may open around $235.
The technical analysis of Tesla's (TSLA) stock chart provides crucial insights into the stock's recent bullish momentum:
Since May, Tesla's stock has moved within an upward channel (shown in blue), with the lower boundary acting as significant support (indicated by blue arrows).
The downward rounding in October (shown by the red arrow) may signal bearish pressure aimed at testing this support.
The bullish momentum following the earnings report suggests that the attempt to break below the channel's lower boundary failed. Therefore, bulls may continue to push TSLA's price upwards within the existing channel. It's possible we could see another attempt to challenge the key resistance level at $260 by the end of the year.
Read more: https://fxopen.com/blog/en/oa-tesla-tsla-shares-surge-by-11/
Text source: Forex Trading Blog
