Skip to content

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

Tesla stock poised for higher opening after unexpected Q2 profits

Tesla shares rose over 4% in after-hours trading on Wednesday, after posting a fourth straight quarter of net profits.

Tesla TSLA Stock Share Price Prediction Rating Analysts today chart car model 3 Y sale earnings Source: Bloomberg

Tesla share price: What’s the latest post-earnings?

US electric car maker Tesla's (NASDAQ: TSLA) shares rose as much as 4.4% in after-market trading on Wednesday 22 July, after it reported a fourth consecutive quarter of profits.

These latest results mean Tesla has achieved its first full year of profitability on a GAAP (standard accounting) basis. Thanks to that, the company can now be considered for inclusion on the S&P 500 index from as early as September, according to the index’s listing rules.

Tesla shares closed at US$1656.50 each on Wednesday. IG’s market analysis show that ‘buys’ formed 52% of all trades on the Tesla counter for the day, indicating an expectation for a price increase.

Tesla posts better-than-expected revenue

Tesla – which overtook Toyota Motor Corp as the most valuable US automobile company earlier this month – posted a net income (GAAP) of US$104 million in the quarter ended 30 June 2020.

Total revenue came in at US$6.04 billion, versus Refinitiv analyst estimates of US$5.37 billion. However, on a year-on-year basis, revenue is down by 5%.

Earnings per share (non-GAAP) hit US$0.0218 per share, versus Wall Street expectations of US$0.03. This is up 91% from the previous quarter.

Automotive revenue, however, fell 4% year-on-year to US$5.18 billion despite higher vehicle deliveries, regulatory credit revenue, and energy generation and storage revenue.

The company said this was due to lower vehicle average selling price (ASP) and lower services and other revenue.

Total deliveries for the quarter was 3% higher quarter-on-quarter at nearly 91,000 units.

Looking to trade Tesla stock? Open a live or demo IG account today.

What’s the outlook for Tesla for the rest of 2020?

Despite the lower sale price of its cars, Tesla founder and CEO Elon Musk said during the earnings conference call that he is still unsatisfied with how expensive Tesla cars are.

‘The thing that bugs me most right now is that our cars are not affordable enough, we need to fix that,’ said Musk. ‘I think we just want to be like slightly profitable and maximize growth and make the cars as affordable as possible.’

In terms of production sites, Musk also revealed that the next US Gigafactory will be in Austin, Texas. He said that the new factory would manufacture Model 3 and Model Y vehicles, as well as a new semi-truck called the Tesla Semi (slated for 2021 delivery) and the much-hyped state-of-the-art Cybertruck.

Meanwhile, the company says it is continuing to build capacity for Model Y at Gigafactory Berlin and Gigafactory Shanghai, and that deliveries from both locations are still on track to begin in 2021.

It is also installing additional machinery at the Fremont Factory in the US, which is expected to increase total Model 3 / Model Y capacity from 400,000 to 500,000 units per year.

Despite production interruptions this year due to the Covid-19 pandemic, Tesla says it is still targeting to deliver half a million vehicles by the end of 2020.

Tesla share price: Where next?

In terms of share price, IG market analyst Monte Safieddine wrote recently that the technical overview for Tesla remains volatile, with its main technical indicators flashing green and an average directional movement index (ADX) showing an ongoing propensity to trend.

‘That means contrary to the classic buy vs. sell mentality in approaching a stock, strategies that conform to the current overview should it persist would be breakout strategies anticipating a break/breach of its key pivot points (to the upside or downside),’ he wrote.

The stock currently has a consensus rating of ‘hold’ from 31 investment analysts polled by FactSet.

Tesla’s share price is up 280% year-to-date.

How to trade the Tesla stock with IG

Are you feeling bullish or bearish on Tesla shares? Either way you can buy (long) or sell (short) the asset using derivatives like CFDs offered on IG's industry-leading trading platform in a few easy steps:

  • Create a live or demo IG Trading Account, or log in to your existing account
  • Enter <Tesla Motors Inc> in the search bar and select the instrument
  • Choose your position size
  • Click on ‘buy’ or ‘sell’ in the deal ticket
  • Confirm the trade

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

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. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Look closer this US earnings season

Discover opportunities with using our award-winning technology* and range of educational resources.

  • Get expert analysis on upcoming announcements
  • Set automated alerts to never miss an opportunity
  • Choose from 10,000+ shares with our stock screener
Learn more

* Winner for Mobile Platform / App based on the Investment Trends 2018 Singapore CFD & FX Report based on a survey of over 4,500 traders and investors. Awarded the Best Online Trading Platform by Influential Brands in 2019 and 2022.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

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.