Why Is Tesla Stock Moving Up Non-Stop? How Far Can it Go?
One of the most compelling stories of the year from the stock market has been the remarkable performance of the Tesla Inc (NASDAQ:TSLA) stock so far. The stock of the electric vehicle manufacturer has managed to defy the difficulties posed by the coronavirus pandemic and has been a notable success story.
On Monday, the Tesla stock jumped again and ended that day with gains of around 9%. The gains were generated after the Tesla stock experienced declines this past Friday. However, the slight decline on Friday may actually have presented a buying opportunity to many investors yesterday. That being said, there are other factors at play as well and investors could consider having a closer look at those.
There wider market gained on Monday as well and that could have had an effect on the Tesla stock. In addition to that, there has also been considerable speculation that Tesla is also on the verge of coming up with new, improved batteries at its plant in Berlin, Germany. The company has apparently deployed new technology to come up with those batteries. Due to the overall positivity in the wider market, the NASDAQ gained as much as 1.7% on Monday and that had a significant effect on many growth stocks including that of Tesla.
However, the more important trigger came for the stock from a report that claimed that the company is all set to launch new batteries. The Minister of Economics in Germany, Jorg Steinbach stated that Tesla is all set to come up with a battery with higher energy density at its factory in Germany.
The new battery is expected to provide a longer driving range and hence, a significant improvement. Steinbach had actually been one of the biggest backers of the Tesla factory in Germany. He stated that the company is going to provide more details about these batteries at an event that is expected to be held in the latter part of September. It goes without saying that investors ought to keep an eye on the announcements that are going to be made at this event by Tesla. The company has a Battery Day event scheduled to be held on September 22.
Last week, the company also announced its financial results for the fiscal second quarter and that proved to be impressive as well. It was the fourth straight quarter in which Tesla managed to generate a profit. The non-GAAP earnings per share swung from a loss of $1.12 a share to a profit of $2.18 a share. Analysts expected non-GAAP earnings to be $0.03 a share. Despite the fact that the company’s main factory was shut down for 50% of the quarter, Tesla managed to turn a profit and that is a commendable performance.
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