TESLA Returns Above $1000 On Elon Musk’s Break-Even Optimism
Tesla stock finished sharply higher yesterday ahead of the end of the second quarter after Tesla’s (TSLA) CEO Elon Musk in an internal email said to its employees to work hard to allow the carmaker to break even in the 2Q despite the coronavirus crisis, and asking them to go the extra mile to make it happen. The company is trying to avoid a quarterly loss despite the Fremont, factory being shut down for two months due to coronavirus outbreak.
Tesla is expected to announce its second-quarter deliveries on July 2. Analysts expect the company to deliver about 74,000 vehicles in the second quarter. Tesla delivered 88,400 cars in the first quarter. Tesla reported its third consecutive quarter with a profit in the first quarter. The Earnings per share (EPS) came at $1.24 per share, while the Revenue was $5.99 billion. Tesla has not set a date to release its second-quarter financial numbers.
Tesla closed yesterday 5.17% higher at 1009,35 approaching the all-time highs from June 10 at 1027. The technical picture is bullish, and an attempt to all-time highs looks possible ahead of the second-quarter earnings.
On the upside, immediate resistance for the Tesla (TSLA) is at 1010.00 the high from yesterday’s trading session. Next hurdle stands at 1017,70 the high from June 16. The next critical resistance zone will be met at the record highs from June 10 at 1027.
On the flip side, initial support for Tesla stands at 948.52 the low from yesterday’s session. Next support will be met at 937.35 the low from June 25. A break below might open the way for a test of the 50-day moving average at 857.06.