Deutsche Bank

Today is the first trading day for Tesla’s (TSLA) stock after the automaker released its second quarter production and delivery results – missing its goals for both. The automaker confirmed missing its delivery guidance of 17,000 vehicles in Q2 with only 14,370 vehicles, while also missing its production guidance of 20,000 vehicles with only 18,345 vehicles.

The stock price fell sharply (over 4%) in pre-market. Now the first Wall Street analysts are commenting and adjusting their earnings prediction to account for the new information released by Tesla.
Expand
Expanding
Close

While Tesla’s stock price gained 6% this morning after a note from Deutsche Bank, short interest on Tesla’s stock increased to 21.3% of the outstanding shares. This is the highest level of short interest on Tesla in the past 13 months. Short interest contributed greatly to the previous few surges of Tesla’s stock price. In early 2013, short interest was over 30 million shares when Tesla reported a profit. Investors started covering their short position, which created a lot of demand for Tesla’s stock.

Tesla is holding an event Thursday to announce their home energy storage products. Historically, Tesla’s stock price increases prior to an announcement and then decreases after the event. This is commonly referred to as “buying on the rumor and selling on the news”. So far, this current event is not an exception with Tesla’s stock price gaining over 20% since Elon Musk tweeted about the upcoming event to be held at Tesla’s design studio in Hawthorne.

Expand
Expanding
Close