Tesla stock. Some hate it, some absolutely adore it. Going into the Q1 earnings report, many were unsure of Tesla's ability to generate revenue in a pandemic environment that started mid-March. However, the automaker would soon reveal to investors at market close on April 29 that business was better than expected, in fact, $135 million in revenue over what Wall Street predicted.
Along with $1.24 adjusted earnings per share and a capital expenditure of $455 million, Elon Musk is looking beyond the Corona-virus and actually focusing on expansion and innovation. As a result of the stronger-than-expected earnings report, Tesla opened
April 30 trading at $855.19, a near 7% increase from previous days market close of $799.85. With share prices jumping to the near highs that we saw back in late February, the question remains: Is it time to jump on the Tesla bandwagon?
Well, with the current climate going on that has shut down Tesla plants in the US and forced people to stay inside, production and revenue should take a hit in Q2 because getting food and hand sanitizer is more important than ordering the model Y (sorry Elon). However, with the highly anticipated "battery day" set to happen in May along with easing lockdown restrictions as time passes, Tesla stock should see increases in the longer run. Don't get too excited over the Q1 earnings, wait until the damage is fully accessed from the pandemic, and then we can see just how high Tesla can fly.
Any thoughts? Feel free to comment below