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Tesla goes ‘Mini’ ahead of earnings


Tesla goes ‘Mini’ ahead of earnings

Tesla will release its second quarter results after the US stock market closes tonight. Hopes are high amongst ‘Tesla Traders’ that the company will confirm reports that it is bucking the trend amongst other automakers. There is speculation that Tesla will report increased sales, despite the slump in economic activity due to the coronavirus.

While other car makers have seen their share prices struggle in the current environment, Tesla’s stock has soared. Just over a week ago it hit a fresh record high, coming within a few cents of $1,800. That was a five-fold increase on where the shares traded just four months ago. This gave Tesla a market capitalisation of $320 billion making it the world’s most valuable car maker by miles. Since then, the stock has pulled back towards $1,500 as profit-takers stepped in. Where it goes next could depend on the numbers released later tonight.

It goes without saying that Tesla’s high share price has made it too expensive for many traders to speculate on. But we’ve got a solution. You can now trade Tesla as a US mini-share, where it joins other heavyweights such as Amazon, Facebook and Apple. By dividing our dealing price by ten, we’ve slashed the initial margin required to trade Tesla. This also reduces the volatility, making a Tesla Mini-Market trade a much less scary proposition than the full-blown version. You can find out more about Tesla and our other Mini-Markets by visiting our website.

Tesla is one of the most talked-about companies in the world. Every day it features in the top three of the most popular stocks on our ‘Smart News’ social media tracking widget. Hardly surprising, given its high profile, and controversial boss, Elon Musk. The company has certainly had a rollercoaster ride. Just over a year ago, some commentators were speculating that the company was close to bankruptcy. yet the latest move in Tesla’s share price has made it the 14th largest US company by market capitalisation. That’s up from 20th in mid-June.

So, it’s surprising that despite its market valuation Tesla is expected to report a loss for the second quarter, at least when calculated by Generally Accepted Accounting Principles. But a growing number of analysts reckon Tesla could squeeze out a profit. If it can, that would make the company eligible to be considered for inclusion into the S&P 500 – something that would broaden the appeal of the stock.

So, as we approach the big moment make sure to follow all the social media buzz. You can do this by adding a Tesla feed on the Smart News widget on our trading platform.


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