How Elon Musk Just Added Billions in Market Cap to Tesla Overnight
Tesla's second quarter was far from clean. But, CEO Elon Musk called out several things on the earnings call that played into a bullish thesis on the stock.
While Tesla's (TSLA) second quarter was far from clean, CEO Musk managed to do just enough to jump-start the bullish thesis on the stock that had all but died in recent months.
Here is what TheStreet picked up on from the earnings call that helped fuel a 10% pop in Tesla's stock in after-hours trading Wednesday. Shares indicated up 9% in pre-market trading Thursday.
Musk promised (again) Tesla would be profitable each quarter going forward. He did leave himself an out should the economy weaken from strong second quarter growth rates. But the promise was enough for the Tesla bulls.
Musk reiterated he doesn't expect an equity capital raise.
Musk suggested (again) Tesla has fully autonomous driving capabilities ready to go today.
Musk apologized to the two Wall Street analysts he embarrassed on the first quarter earnings call. He blamed a lack of sleep last time. A more mature Musk emerging? Who knows, but Wall Street appreciated the olive branch.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
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