The electric cars manufacturer delivered an exceptionally positive earnings report for the third quarter on Wednesday, which surprised all market analysts.
The initial consensus forecasts projected EPS of $ - 0.42; however, the net income per share attributable to common stockholders, diluted non-GAAP was reported at $1.86.
According to Nasdaq.com, Tesla Inc. managed to generate a total of 153.06 per cent positive surprise on its common stock’ growth for the previous quarter.
This is only the fourth positive quarterly performance for the automobile manufacturer since the beginning of 2015.
The company’s net revenue was reported at $6.3 billion, which is just slightly below the initial market expectations of $6.33 billion.
Another positive surprise to all shareholders was the admission that the construction of the Gigafactory Shanghai was going ahead of schedule, which means Tesla now faces much better production prospects in 2020.
“We are already producing full vehicles on a trial basis, from body, to paint and to general assembly, at Gigafactory Shanghai. We have cleared initial milestones toward our manufacturing license and are working towards finalizing the license and meeting other governmental requirements before we begin ramping production and delivery of vehicles from Shanghai.”
The share price of the company surged with exactly 45 dollars throughout Thursday’s trading session on the overwhelmingly positive news, which amounts to 17.67 per cent hike.
The price finally looks ready to form a new long-term bullish trend after it had reached the historic low at 177.00 in early June.
In relation to Elliott Wave Theory, the price looks as if it is in the early stages of forming the third impulse wave; however, there are also indications of a likely forthcoming price correction.
Yesterday’s trading session was terminated when the price reached just below the 61.8 per cent Fibonacci resistance level at 300.90.
The 300 level has psychological importance owing to the double zeroes at the end, which typically tends to lead to price rebounds in the opposite direction to the general trend.
Overall, even if there is an immediate correction, the price is more than likely to find support at the 276 level, before the new trend resumes its development.