Tesla boosts margins and surprises with strong quarterShares of Tesla (Ticker AT: TSLA.US) surged more than 11% following the release of its third-quarter results, which beat investor expectations. The company highlighted by breaking its streak of four consecutive quarters of missing earnings per share (EPS) estimates, driven by a significant improvement in its margins. During the earnings call, CEO Elon Musk highlighted the achievement of a record quarter, attributing the growth to lower manufacturing costs and Cybertruck achieving a positive gross margin for the first time. In addition, Tesla boosted revenue thanks to the sale of regulatory credits and rapid growth in its energy storage business.
Technical:
After a bearish month retreating -19.22% from its value at $265.11 to $212.16 on the 23rd, yesterday's trading generated a bullish gap up candle that has recovered its price to $260.48. The stock is at the high end of a long term bearish range, we will see if the company pierces $278.00 to show that the company's management is really taking market leadership. The control point of the price bell of the company is clearly located around $253. The average crosses show us that the 50 average has used the 200 average as support to generate the candlestick represented yesterday, we will see if this movement develops in an expansive way. The RSI shows an advance of the stock to an overbought level of 64.90%, so this price evolution could extend for a while.
Positive outlook for the future
Musk reaffirmed that the company will launch more affordable models in the first half of 2025 and expects overall production to grow by 20% to 30% next year. In addition, Tesla plans to accelerate Cybertruck production in 2026, while autonomous driving technology (FSD) will surpass human safety levels by the second quarter of 2025. Ride-hailing service is also expected to be available in Texas and California next year.
Despite the enthusiasm of many analysts, some such as Bill Maurer warn that Tesla's high valuation remains a concern, along with increasing competition in the electric vehicle and robotaxi market.
Other market events:
• Boeing faces cash flow problems due to strikes.
• Amazon introduces fuel discounts for Prime members.
• Asian market showed mixed performance while US futures point to a positive S&P 500.
Ion Jauregui - ActivTrades Analyst