Tesla Explodes Higher As Company Reports Blowout EPS, Even As CapEx Disappoints Again

And speaking of Shanghai, Tesla said it was already producing full vehicles on a trial basis, from body, to paint and to general assembly, at the Chinese Gigafactory:

"With Model 3 priced on par with gasoline powered mid-sized sedans (even before gas savings and other benefits), we believe China could become the biggest market for Model 3."

Looking ahead, Tesla repeated that "deliveries should increase sequentially... We are highly confident in exceeding 360,000 deliveries this year." It appears that Tesla has now removed the upper end, 400,000 of the range it had provided before.

Most importantly for investors, however, Tesla now forecasts "positive quarterly free cash flow going forward, with possible temporary exceptions, particularly around the launch and ramp of new products. We continue to believe our business has grown to the point of being self-funding."

The only problem with this statement: Tesla has made it before.

So while analysts are scratching their heads to figure out just how Musk padded results this quarter, the stock is exploding higher in a furious short squeeze, trading up 17% to just shy of $300, the highest since April.

Bizarrely, while Elon Musk didn't sign the actual quarterly letter - a first - he did Tweet his own summary of the company's results.

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Nicholas Charles Cox 7 months ago Contributor's comment

This is a typically bearish article on Tesla which we see on sites such as this and Seeking Alpha.There are many writers out there who either have a short position on Tesla which is killing them, or who are financed by fossil fuel entities because Tesla is a feared disrupter.

Tesla continues to disappoint the FUD's by put-performing from analyst's estimates.It would be a reckless investor who shorts Tesla now.

Mike Nolan 7 months ago Member's comment

#Tesla has many obstacles and challenges to overcome. Anyone who denies that isn't willing to face reality. That being said, too many short sellers underestimate the company's loyal fan base. I wonder how many of them have ever driven a Tesla. There's simply no other car out there like it. Just like #Apple's fans got them through the hard times, so will Tesla's. %TSLA $AAPL