CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Tesla share price soars as Q3 profits beat expectations despite 40% sales slump

The electric carmaker shocked investors and short-sellers after smashing Q3 profit forecasts, despite a drop of almost 40% in revenue from the US market.

TeslaTesla unveiled its Q3 results last week, which smashed analysts’ expectations, with adjusted earnings per share (EPS) hitting $1.91 – far outweighing the $-0.24 predicted by forecasters.

The news sent is shares soaring more than 20% in the days following its earnings, though despite the electric carmaker returning to profitability, quarterly revenues surprisingly fell compared with last year – the first time that has happened since 2012. In fact, revenues came in at $6.3 billion, below the $6.45 billion analysts expected.

Looking to trade Tesla and other car stocks? Open a live or demo account with IG.

Tesla ramps up production in China

The electric carmaker also used its latest results to tell investors that it is ramping up production in China ahead of schedule.

‘We are already producing full vehicles on a trial basis, from body, to paint and to general assembly, at Gigafactory Shanghai,’ the company said.

‘We have cleared initial milestones toward our manufacturing license and are working towards finalizing the license and meeting other governmental requirements before we begin ramping production and delivery of vehicles from Shanghai.’

Short-sellers lose big after Tesla’s shock earnings

Tesla short-sellers took a $1.4 billion hit last week after its shock earnings – wiping out around 70% of naysayers profits for the year, according to financial analytics provider S3 Partners.

‘Shorts were reducing their exposure in the event of a strong earnings report,’ Managing Director at S3 Ihor Dusaniwsky wrote in a note last week.

‘We are expecting more short covering and the continuation of this long-term short squeeze as TSLA's stock price continues to show strength,’ he added.

You can go long or short Tesla with IG using derivatives like CFDs.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.