Tesla Stock Soars After Top- and Bottom-Line Beat

Analysts are predicting a few short-term headwinds, however

Deputy Editor
Apr 21, 2022 at 10:03 AM
facebook twitter linkedin


Electric vehicle (EV) maker Tesla Inc (NASDAQ:TSLA) finally released its highly anticipated first-quarter earnings report, and the turnout was much better than expected. The firm posted profits of $3.22 on $18.76 billion in revenue, besting Wall Street's estimates on both fronts. Tesla did warn that ongoing supply shortages will put some constraints on the company for the rest of 2022, but said there was a "reasonable shot" for 60% delivery growth for the year. 

The stock was last seen up 11% at $1,084.60, set to topple a short-term ceiling at its $1,040 level. Prior to today's jump, TSLA was consolidating just below this area, though its 30-day moving average stepped in as support earlier this week. Tesla stock is also set to rise back above its year-to-date breakeven, and boasts a more than 45% year-over-year lead. 

Analysts are targeting TSLA in droves. So far, no fewer than five members of the brokerage bunch lifted their price targets. The highest came from Oppenheimer, which raised its price objective to $1,291 from $1,103. Meanwhile, Credit Suisse also lifted its price target to $1,125, but predicted short-term margin pressure in the next couple quarters amid worsening inflation and expanding facilities. 

Options traders are also circling TSLA. So far, 297,000 calls and 189,000 puts have exchanged hands, which is two times the intraday average. The most popular contract is the weekly 4/22 1,100-strike call, followed by the 1,200-strike call in the same series, with positions being opened at the former. 

 




 
Special Offers from Schaeffer's Trading Partners