Friday’s Headlines: Why Is Tesla Up 18% Pre-Market?
1. Tesla stock rose as much as 18% after hours after reporting on Thursday that it delivered approximately 88,400 vehicles in the first quarter of 2020, beating expectations of 79,900. The estimates took into account the COVID-19 pandemic, which required Tesla to wind down new car production at its main car plant in California in March and also suspended production in Shanghai for January and February. During its year-end earnings call for 2019, Tesla execs told investors it should be able to “comfortably exceed” 500,000 deliveries in 2020. Tesla has not updated this figure. Read more here.
2. Despite reports of a historic 6.6 million Americans filing for unemployment, domestic stocks rose during regular trading on Thursday. The Dow Jones Industrial Average and S&P 500 both rose more than 2.2%, while the Nasdaq was only lifted 1.7%, off the back of a major sell-off among SaaS and cloud stocks. Meanwhile, the federal government in the U.S. continues to work on the specifics of how to funnel nearly $2 trillion into the American economy as part of the CARES Act stimulus package. Read the full story here.
3. Video game stocks are on the rise in the U.S. as record sales are confirmed in Q1, with millions of people around the world stuck at home with nothing to do. Activision Blizzard saw itself jump nearly 6% on Thursday, with EA up almost 5%, and Take-Two Interactive following closely with a 3% stock jump. “COVID-19 has ultimately helped boost sales as more people are under lockdown and gaming is a safe and low cost form of entertainment,” said Niko Partners analyst Daniel Ahmad. Get the complete report here.
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Moving Down ⬇️