Will Tesla stock post-earnings aftermarket volatility continue?
News of earnings accompanied by forward-looking statements either propel or kill off an uptrend; and Tesla stock has been on a bull wave since October, 2011 with a down blip on news on two key personnel leaving the company.
So, when the news of earnings for Tesla Motors, Inc. (Nasdaq: TSLA) stock hit the public, after-hours trading reacted violently at first, but in favor by taking the stock to greater heights. However, the often fickle after-hours crowd changed their minds, sold off and brought the stock down below its daily close.
Problem is, many traders want to treat Tesla as if it was a mature company like GM or Ford. Fact is , it is not, albeit the engineering achievements make it look like one. So, traders and investors alike must stay focused on important statements contained within the quarterly reports.
In a letter to shareholders, Tesla started by noting they were pleased to report another quarter of solid performance throughout all areas of their company. Most importantly, Model S development and testing remain on schedule so as to commence deliveries by July of this year. As a forward-looking statement, that is a positive.