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Tesla Shares Surge After A Better Than Expected Second Quarter Report

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Tesla Shares Surge After A Better Than Expected Second Quarter Report

(CTN News) – Tesla shares rose nearly 10% on Thursday after the electric car maker reported better-than-expected second-quarter results.

Tesla reported earnings per share of $2.27 after the bell on Wednesday, higher than the $1.81 expected by Refinitiv.

The company’s revenues increased by 42% year-over-year, but automotive margins declined due to inflation and increased competition.

Although it faced production issues at its Berlin, Texas, and Shanghai factories, analysts said the company delivered a better outlook than expected.

In addition, Wall Street appreciated its move to sell 75% of its bitcoin holdings, which added $936 million to its cash flow during the quarter and helped it avoid a write-down on the value of that investment.

According to Wedbush analysts Dan Ives and John Katsingris, the quarter was better than expected with solid guidance for the second half of the year.

RBC and Jefferies analysts set $1,100 and $1,050 price targets on the company, respectively, with an outperform rating.

Tesla shares price is not expected to move significantly in the near future, according to some analysts.

Tesla is hard to get excited about until it posts a significant margin miss and/or we see evidence of new growth/margin profiles from Berlin and Austin, Morgan Stanley’s Adam Jonas wrote on Wednesday.

In light of Tesla’s lack of a quarterly financial filing, analysts responded to a shareholder deck and executive remarks.

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