Tesla is rallying after reporting a smaller-than-expected loss (TSLA)

pulse

May 2, 2018 6:22 PM

The stock has been flirting with a key resistance level ahead of the earnings report that sent the stock rallying. Tesla reported a smaller-than-expected loss of $3.35 per share.

The stock is up about 1% in after-hours trading

Tesla on Wednesday reported first quarter earnings results that were better than Wall Street analysts had expected.

Here are the key numbers:

Adjusted losses per share
Revenue
Cash burn:

The stock initially popped as high as 3% before sinking slightly, and was hovering near 1% at the time of writing.

Tesla produced 2,270 Model 3 sedans per week in April, it said in the earnings release. The auto-news website Electrek reported last month that Tesla was aiming to produce 6,000 Model 3 cars per week by the end of June to hit its weekly target of 5,000 after accounting for a margin of error.

The company also said it aimed to achieve profitability and a positive cash flow by the third and fourth quarters.

Tesla's latest earnings come after a slew of headlines that have hurt its stock price this year, including a fatal crash and subsequent NTSB investigation, "production hell" for its Model 3 sedan, and an exposé of dangerous factory floor conditions.

The earnings are also a test for short sellers, who have piled on record bets that Tesla's stock price will fall. As of Wednesday, 39.42 million Tesla shares were borrowed for short bets, representing 31% of the shares available for trading, according to financial analytics firm S3 Partners.

Wednesday's after-hours gains bring Tesla's stock price back above a key $300 resistance level that it has been flirting with throughout 2018.

Akin Oyedele contributed to this report.

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