Electric car giant Tesla's stock (NASDAQ:TSLA) is making waves in extended hours trading, gaining 11% on the back of strong earnings, and a positive outlook. The firm delivered an EPS beat of almost 20%, with the actual of $0.72 firmly above the consensus of $0.60.
This bucks a trend where Tesla had missed EPS expectations in each of the previous three quarters, and has given the bulls something to cheer. The stock has fallen 15.98% over the past month of trading in the lead up to earnings, with the $265 level again proving difficult to breach, as has repeatedly been the case over the past year.
The yearly chart below clearly highlights the three periods that Tesla's stock price has breached the level, only to fall back. With a 52 week high of $271, and an indicative open at $237.50, there is still room to run before a potential re-test, but traders will be watching this with interest.
In an interesting side note, the company confirmed its significant Bitcoin investment remains in tact, despite rumours to the contrary. Tesla's portfolio still comprises the entirety of the 11,500 BTC held since the start of the year, with no Bitcoin sold up to September 30.
Tesla's steadfast approach to holding Bitcoin is indicative of confidence within the company regarding the cryptocurrency's future. With a current valuation north of $770 million, Tesla's Bitcoin assets represent a non-trivial segment of its broader financial strategy.
The company's third-quarter report further underscores its robust financial health, with a 17% profit increase to $2.2 billion, besting analysts' expectations. Additionally, Tesla saw an 8% revenue surge, albeit slightly short of forecasts.
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Adding intrigue to Tesla's Bitcoin commitment, the recent movements in its BTC were confirmed as internal and associated with a technical restructuring of the company's cryptocurrency wallet. This included a shift in custody provider as part of Tesla's ongoing digital asset management. The decision to maintain Bitcoin holdings is somewhat expected, given Elon Musk's prominent role within the cryptocurrency sphere and his association with significant figures, including Donald Trump, who collectively champion the crypto sector.
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