Tesla shares surge after fourth quarterly profit in a row!

July 23, 2020 13:45

In its latest earnings report, Tesla reported its fourth quarterly net profit in a row. The company, led by Elon Musk, reported a net profit of $104 million in the previous quarter. Last year, they reported a loss of $408 million. A huge difference in just a short period of time which is reflected in its share price.

While Tesla shares are up nearly 300% - this year alone - its share price continued to rise in pre-market trading after the announcement. Investors were expecting a slight loss, catching a few off guard. Interestingly, a large portion of their profits came from a unique revenue stream.

$428 million of revenue came from the sale of regulatory credits where Tesla sells its zero-emissions credits to other major car manufacturers who need them to avoid carbon-emission penalties. Analysts have called it Tesla's 'secret weapon', especially now that Tesla has a larger market cap of any vehicle manufacturer.

However, even more surprising to analysts and investors was the fact Tesla's revenue of $6.04 billion was $1 billion higher than anyone forecasted. This is also over the coronavirus lock down period. This helped earnings per share surge higher to $2.18 against an expected $1.45.

Due to its fourth month of consecutive profits, Tesla is now eligible to be included in the S&P 500. One reason cited for the incredible rally this year is because index-tracking funds will have to buy the stock as well.

How to trade Tesla shares

If you are feeling bullish or bearish on Tesla's share price you can speculate on its price direction using CFDs (Contracts for Difference). This allows you to trade long and short a market. To get started, follow these five simple steps:

  1. Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
  2. Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
  3. Type in Tesla at the bottom of the Market Watch search box and then drag the symbol onto the chart.
  4. Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
  5. Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.

Source: Admiral Markets MetaTrader 5 Web, #TSLA, Weekly - Data range: 12 April 2015 to 23 July 2020. Please note: Past performance is not a reliable indicator of future results.

How will you be trading it?

One way is to make sure you have access to some of the best training tools in the business. Did you know that you can access the Technical Insight indicator directly from your web browser in the Admiral Markets Traders Room under Premium Analytics?

Source: Admiral Markets Traders Room Premium Analytics

This FREE indicator provides actionable trading ideas on a wide range of different markets! You can also download it to your desktop trading platform if you prefer. Get started with it today, completely free by upgrading your MetaTrader 5 trading platform to the Admiral Markets Supreme Edition and clicking on the banner below:


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4.The Analysis is prepared by an independent analyst Jitan Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.

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