It seems to be a bad day in Shortsville yet again, with Tesla Inc. (NASDAQ:TSLA) surging far beyond expectations during Monday trading. As of 12:34 p.m. EST, the Elon Musk-led electric car maker and energy company’s stocks were rallying up 6.23 percent. With this latest surge, TSLA’s stocks defied shorts, hitting $336.29 per share.
The sudden rise of TSLA’s shares on Monday morning came as a surprise to investors, as shares of the company stock recently experienced a decline after Tesla adjusted its estimates for the Model 3’s 5,000 per week production timeline, again.
Though there’s no one single cause for today’s run up, recent circumstances surrounding the electric car company including a combination of optimism about the company’s Q4 earnings and the strong, positive reaction to the Model 3, are believed to be the root cause for today’s 6 percent gain.
Tesla’s Q3 2017 delivery reports were, in a lot of ways, a combination of good and bad news. On the one hand, the carmaker’s delivery numbers indicate that the Model 3’s ramp-up is still significantly behind schedule, with Tesla adjusting its projection for the mass market electric compact sedan’s production figures of 5,000 units per week to the end of Q2 2018 instead of Q1 2018.
On the other hand, Tesla’s Q3 2017’s delivery reports also featured a significant improvement in the production of the Model 3, as well as signs that the “manufacturing hell” which CEO Elon Musk referred to is ending soon. The California-based electric car maker’s report even stated that during the “last few days” of 2017, the Model 3’s production line hit a pace that translates to 1,000 vehicles per week.
This, augmented by strong delivery figures for the Model S sedan and the Model X SUV, all contributed to Tesla actually exceeding its forecast of delivering 100,000 flagship cars by the end of the year. As 2017 closed, Tesla was able to deliver 101,312 Model S and Model X vehicles, translating to an increase of 33 percent over 2016.
Considering the pace that the Elon Musk-led firm was producing and delivering vehicles during the last quarter of 2018, many Tesla investors are likely expecting a better than expected turnout for the company’s Q4 earnings report, which is set to be released sometime next month. Apart from this, the Model 3, despite being delayed yet again, continues to get great reviews across the board, seemingly making Tesla’s investors practically unfazed with last week’s “bad news.”