Electric vehicle maker Tesla, Inc.'s (NASDAQ:TSLA) shares rose sharply in premarket trading on Monday, raising the possibility of the stock extending its gains from Friday.
After a winning streak that extended for 11 straight sessions, the stock reversed course last Thursday, tumbling over 8% in a single session. The weakness came after a Bloomberg report said the Elon Musk-led company would likely push back the Aug. 8 robotaxi event by two months. With the billionaire and the management not coming out with any clarification in this regard, the uncertainty pressured the stock.
Tesla acquitted itself creditably the very next session, rising nearly 3%.
Monday's premarket strength comes close on the heels of Musk publicly endorsing the presumptive Republican candidate Donald Trump following the shooting at his Pennsylvania rally. Ahead of the unsavory incident, a Bloomberg report said Friday, the billionaire has made a contribution to the low-profile America PAC, which supports Trump, without disclosing the exact amount.
Tesla shares could come in for more volatility this week as the company is scheduled to report its quarterly results on July 23. Analysts, on average, expect the company to report second-quarter earnings of $0.56 per share, down from the $0.83 per share reported a year ago, with the decline reflecting the margin impact of price cuts and discounts. Revenue is estimated to have fallen 10.20% to $22.38 billion.
In premarket trading, the stock rose 4.40% to $259.14, according to Benzinga Pro data.
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