Bulls are rejoicing and shorts are scrambling after TSLA earnings report.TSLA delivered a surprise earnings beat and solid Q3 deliveries number. However, the top line tally of 6.3B relied on deferred revenue and was below expectations. It also marked Tesla's first annual sales decline since 2012.
JPMorgan is sounding some caution after seeing the initial 20% pop in shares. The analyst team doesn't think the quarter is a "breakout" moment for the EV automaker.
We think the risk/reward favors new shorts versus new longs.
As always, trade with caution and use protective stops.