Why Tesla Shares Are Up on a Market Down Day
Tesla (NASDAQ: TSLA) beat estimates with its second-quarter earnings report, and the stock soared yesterday. After closing nearly 10% higher Thursday, Tesla shares are extending those gains in Friday trading against the backdrop of a falling market. While the Nasdaq Composite was down 1.9% as of 1 p.m. ET, Tesla shares were 1.4% higher at that time.
Tesla earned $1.95 per share for the quarter from sales of $16.9 billion. While that was down from first-quarter revenue of $18.8 billion, it still represented a jump of 42% year over year. And both top- and bottom-line results beat analyst expectations of $1.81 per share and $16.5 billion, respectively. Investors already knew the second quarter was challenging, with COVID-19 delays at its Shanghai plant and supply chain issues hampering the ramp-up of its two new plants. But Tesla's original guidance of 50% annual production growth still remains doable, which boosted investor confidence after the stock was down more than 30% year to date heading into the report.
Source Fool.com
