Tesla Stock Climbs Higher In Monday Premarket: What's Fueling The Surge?

Electric vehicle maker Tesla, Inc.’s TSLA shares are poised for outperformance on Monday, as they are solidly higher in premarket trading.

The stock fell 8.78% or $20.97 last Friday before closing at $217.80, the lowest close since Sept.9.

The premarket strength could point to bargain hunting after the stock’s 13% plunge in the week ended Oct. 13. Even if the stock stages a recovery in the near term, a sustainable uptrend is unlikely until the company’s third-quarter earnings report is out. Investors are skittish about the margin impact of the incentives it had in place to stimulate sales.

See Also: How To Buy Tesla (TSLA) Stock

Tesla is scheduled to announce its quarterly results after the market closes on Oct. 23. Analysts, on average, expect the company to report earnings per share of 57 cents, down from 66 cents a year ago. Revenue may have increased 14.70% to $25.34 billion. The company reported its first year-over-year delivery growth in three quarters earlier this month.

As Tesla slumped nearly 9% on Friday, Cathie Wood-run Ark Invest’s ARK Next Generation Internet ETF ARKW bought 12,730 shares in the Elon Musk-led company. At Friday’s closing price, the purchase is worth $2.77 million.

The stock could also be getting a shot in the arm from sister company SpaceX’s success in catching the Starship rocket booster for the first time as it returned to the Earth following its launch.

In premarket, Tesla stock rose 1.13% to $220.26, according to Benzinga Pro data.

Read Next:

• Tesla Stock Dives After ‘We, Robot’ Event, Lucid’s Q3 Deliveries Beat, GM Reworks Battery Strategy And More: Biggest EV Stories Of The Week

Image via Flickr