Shares of electric carmaker Tesla soared after the firm released its second-quarter results on Wednesday and beat Wall Street's earnings forecasts.
By midday, Tesla shares were up 9.8% at $815, their highest level since May 6, after announcing that its quarterly profit benefited from a series of price hikes for its cars, which helped offset sales difficulties. production.
"Is it possible that Tesla will provide a short-term rally? Yes, absolutely," said Giuseppe Sette, president of quantitative research firm Toggle.
"However, it seems likely that if we really are in an era of liquidity withdrawal and quantitative tightening, rallies in high-momentum stocks like Tesla may not be secular or cyclical, but rather short-term."
In the second quarter, total revenue fell 11% to $16.93 billion, ending a streak of record sales in recent quarters. However, net profit was $2.26 billion in the quarter, nearly double what it posted in the same quarter last year.
"The company managed to overcome the supply chain problems caused by the confinement in China, particularly in Shanghai," said analysts at e-Toro, which explains the mood of investors.
Positive earnings reports from Tesla and streaming giant Netflix have buoyed growth stocks, which had been under pressure from rising interest rates.
With information from Reuters.
