Shares in Tesla (NASDAQ: TSLA) soared on Wednesday and Thursday to a new all-time high of nearly $650, after the electric vehicle (EV) maker posted another quarterly profit that beat market expectations.
On Wednesday, Tesla’s stock closed at $581, which was an all-time high, as of yesterday. Today after the market opened, Tesla raced past $600 and touched an intraday high and record high of $646 a share. Over the past three months, Tesla’s stock has surged by more than 80 percent.
The rally on Wednesday and Thursday came after Tesla easily beat market expectations and posted a profit for Q4, a second consecutive quarter in which the company beat outright analysts expectations and defied skeptics.
In Q4 2019, Tesla produced a record 105,000 vehicles and delivered a record 112,000 vehicles, the company said earlier this month. Full-year 2019 deliveries were around 367,500 vehicles, in line with Tesla’s own guidance and beating analyst expectations.
In its Q4 and FY2019 Update on Wednesday, Tesla said:
“We expect positive GAAP net income going forward, with possible temporary exceptions, particularly around the launch and ramp of new products. Continuous volume growth, capacity expansion, and cash generation remain the main focus.”
The EV maker also said that it would start delivering Model Y vehicles by the end of the first quarter of 2020.
Tesla’s market performance has left shorts burning $5.42 billion in January mark-to-market losses, says Ihor Dusaniwsky at financial analytics firm S3 Partners who tracks short interest in U.S. stocks.
Some analysts admitted they were wrong on their calls on Tesla in recent months.
“We fully admit things are better than we expected and there is a lot of positive news flow and data points going Tesla’s way,” RBC Capital Markets analyst Joseph Spak wrote in a note, as carried by MarketWatch.
Daniel Ives, an analyst at Wedbush, told MarketWatch that the “bull party” for Tesla would likely continue because demand for the Shanghai-made Teslas looks strong.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More
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