Tesla stock had its best day in over a month today, finishing up 4.7%, outpacing nearly all other stocks in the S&P 500 and the Nasdaq 100 today. The rally follows Tesla’s breakout earnings report, AI day announcement, and a double upgrade from Germany’s DZ Bank.
For the second quarter of 2021, Tesla beat nearly all expectations and reported its first profitable quarter excluding regulatory credits.
Highlights for the quarter included:
· $12.0 billion in total revenue. Up 98% YoY.
· $1.02 EPS (GAAP). Up 920% YoY.
· 11.0% operating margin. Up 555 bp YoY.
· $1.1 billion net income (GAAP). Up 998% YoY.
· $354 million in regulatory credit revenue. Down 17% YoY.
See the full report HERE
Tesla stock had an initial downward reaction to the earnings. This may have been a result of the possible headwinds due to the semiconductor shortage.
Similar to Autonomy Day and Battery Day, Tesla is having an AI Day on August 19th. Responding to a tweet Musk stated, “convincing the best AI talent to join Tesla is the sole goal.” This also parallels Tesla’s previous goals in recruiting for Autonomy Day and Battery Day. Tesla stock fell -10.34% following Battery Day and gained +0.44% following Autonomy Day.
Tesla Stock Upgrade
With Tesla's strong second-quarter—nearly cutting Tesla's P/E ratio in half—one would expect re-ratings of Tesla stock. One analyst doing so was DZ Bank's Matthias Volkert who gave Tesla a double upgrade from sell to buy and a price target of $750. This comes one day after Citi Bank's price target raise of $209 per share implying a ~70% downside.
How do you think Tesla stock will finish the week? Let us know on Twitter, @teslapodcast.
Disclosure: Brennan Ertl is long TSLA stock and derivatives