Tesla’s share price is set for a bout of extreme price volatility as soon as the Wall Street bell rings later today after the electric car maker released its second-quarter results late-Monday.
Tesla reported bumper Q2 profits, despite facing shortages of semiconductor chips and global supply chain problems at ports hampering production. CEO Elon Musk said during the earnings call that the global chip shortage “remains quite serious”.
Musk said that Tesla manufacturing would hinge on this “slowest part of the supply chain”. As investors are aware growing waiting times for Tesla cars, especially across Europe, are hurting Tesla company results.
Digging into the hugely positive numbers, Tesla sales rose to $12bn in the three months to the end of June, which was up a whopping $6bn a year ago. It should be noted this was when its US factory was shut down.
The electric carmaker said it delivered a record 200,000 cars to customers in the same period. Profits for the second three months of the year were $1.1bn, up from $104m last year, largely bolstered by sales of its cheaper Model 3 sedan and Model Y.
Tax credits have previously made up a significant amount of Tesla profits. In Q2etween $354m in revenues was generated through the sale of such credits, which was slightly down from $428m suring the same period a year before.
Other highlights include Tesla recording a small loss from its Bitcoin holding while Elon Musk continued to talk up Tesla on the earnings call and said: “At this point, I think everyone can agree, electric vehicles are the only way forward”.
Tesla Short-term Technical Analysis
According to the four-hour time frame Tesla’s stock price is trapped within a triangle shaped pattern, the triangle is tightening which means a big breakout could be coming.
In the most likely scenario Tesla’s stock price breaks above the triangle pattern, around $685.00 level and heads towards $800.00. If Tesla’s stock price is rejected from the top of the pattern we should expect another test of the bottom of the triangle, around the $600.00.
Tesla Medium-term Technical Analysis
According to the daily time frame Tesla’s stock price has staged a breakout from a large descending triangle pattern. Due to Tesla solid Q2 number the stock could finally see some upside momentum about the triangle.
If momentum is good alongside buying volumes we could see Tesla’s stock price advance back towards its all-time price high. It is very much dependant on COVID-19 fears and how investors are rating the state of the economy.