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Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

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Tesla Shares Race, But How Long Will The Rally Last?

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 October, Tesla surprised the market with an unexpected profit for the third quarter of 2019, and achieved a record number of around 97,000 deliveries globally in Q3. 

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.”

Related: LNG Prices Fall To 10-Year Low

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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  • TOM KELLOGG on January 30 2020 said:
    As someone who has followed Tesla and TSLA for a few years, none of this comes as a surprise. Tesla's ability to learn and adapt from their missteps and overoptimistic projections in the past has been remarkable. Looking back only 18 months, we see the changes that Tesla has made in plant development and and production ramps that are nothing less than stunning. They are a young company with young, smart and driven people running development and production.

    Interestingly some in the investment community have decided to ignore Tesla's other divisions. Tesla is really not an automobile company. They could be described as an energy company which builds automobiles, or a software company which builds energy products and automobiles. In any case, their energy production and storage division has no peers. And its software developers are years ahead of those in the rest of the automobile industry. The other thing that many investors seem to not understand about Tesla is that they are a purely growth stock. They have never had an intention to pay dividends. That may happen some day, but for the time being, the company has no interest in making, retaining or paying investors from profits. All earnings are being plowed back into production growth, product development and customer support. That may be a different way to run a company, and one that investors don't like, but it is what it is.

    Full disclosure: I own a Tesla PV and storage system and a Tesla automobile.
  • Kay Uwe Boehm on January 30 2020 said:
     Electrified  Was mixery of text copy for quick information many places the german part googlrle translatable now new Q4 result tesla exactly like prediction first showed from google search 0.58$/share now exactly for 580$ means just 1‰
    367 000cars sold 2019
    VW AG about 10 from 100 mio. new cars in world but about same market value of stocks is strange also no jump in earnings last quarter also last year more earnings/share.
    VW AG was also sky rocketing years ago as Porsche tried to take over buying 51% but public known special law that 75% needed for getting VW cash so they must sell with crash share and VW did rescue porsche but now porsche owns 51% again so they control VW but shares of porsche without voice so share holders cannot control.
    German bank share crashed out of DAX now not crashing because in crash time weighting of DB decreased until out
    now left party s. gabriel is manager before attacking.

    VW AG etc. most not in germany also bigger than tesla in USA production.
    Political A. Merkel behind e-cars with 2020 6000€/ car half to pay by tesla and public money build e-fuel stations still less
    Tesla not in top 5 sold last november BRD 2 from VW.
    If 99 % buying e-cars not enough lithium etc but all can drive VW etc. CNG car in world if CNG delivered with new 1000bar 2t CNG 2,4m pebble tank system 5 in 40' container after LNG terminal from there.

    Earth gas USA less 2$/MMBtu 293kWh still 3.9% only burned away in world.
    Cheap electricity can be used also as CNG out of electrolyse H2 + air CO2.






    Prediction:
    Tesla, Inc. is expected* to report earnings on 01/29/2020 after market close. The report will be for the fiscal Quarter ending Dec 2019. According to Zacks Investment Research, based on 4 analysts' forecasts, the consensus EPS forecast for the quarter is $0.57. The reported EPS for the same quarter last year was $0.78.
  • David Sutton on January 31 2020 said:
    To many "Annalists" Tesla share value was and is overvalued with many still listed their position as sell, as a consequence this latest stock movement is seen as a "rally" therefore may consequently have foreseeable end. To those of us who have invested long term we see the stock as undervalued, this stock movement as predictable headings to a valuation point of $6,000 plus pricing in, autonomous driving, solar power, battery manufacture, grid power, semi trucks as well as cars and light trucks.
    There will be no stopping Tesla share price rise in conjunction with the proliferation of electrical energy at the expense of fossil fuels in order to reduce CO2 emissions, when this mission is complete the rally will end, I dont see that as foreseeable and I dont know how much "plus" is on top of the $6,000 but my guess is its a lot.

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