Tesla shares up on hopes of big mass-market model sales
Tesla announced a big earnings miss after the close on Wednesday, posting a loss of $0.78 per share vs. expectations of $0.56 per share. Nonetheless, investors bid the stock close to 2% higher in after hours trading, on promises of accelerating production of its newest car, the Model 3, which Tesla is aiming at the mass market with a starting price of $35,000.
Why it matters: Tesla is being valued at levels close to established automakers like Ford and GM. Investors are betting on the Model 3 to justify that price, and CEO Elon Musk gave them what they were looking for by pledging to meet its commitment to begin delivering the car to customers later this year.