We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shares of Tesla (TSLA - Free Report) gained more than 3% in early morning trading hours on Tuesday. The move comes as the electric carmaker celebrates its Model X being awarded the highest-ever SUV safety rating by the National Highway Traffic Safety Administration.
Indeed, the NHTSA confirmed today that the Model X successfully earned a 5-star rating in every category and sub-category tested for.
“That means that in the event of a serious crash, Model X occupants have an overall 93% probability of walking away without a serious injury – a testament to our commitment to building the safest cars on today’s roads,” Tesla said in a blog post.
Interestingly enough, out of all the vehicles tested by the NHTSA, only the Tesla Model S ranks better than the Model X in terms of injury probability to passengers. Today’s news once again confirms to investors that Tesla is committed to providing a high-quality product to the world.
TSLA is likely also moving higher thanks to short covering. On Friday, as the technology sector was getting slammed, Tesla slumped after notable short-selling research firm Hedgeye called the stock its “best short idea” (also read: Shorts Attack NVDA, TSLA and RLGT).
Hedgeye is known for making snap calls and cashing in on the ensuing slumps, and that seems to be exactly what happened on Friday. Sellers were out in full force, but the drop eventually found a bottom. Now, on the back of more good news about the company, shorts might be feeling the pressure to cover.
Of course, we do have to mention that Tesla currently sports a Zacks Rank #4 (Sell). This ranking is a result of the company’s disappointing results in the prior quarter, which caused analysts to reduce their estimates. Remember, the Zacks Rank is heavily influenced by these estimate revisions, so it was this activity that caused the stock’s rank to take a hit.
And while a Zacks Rank #4 (Sell) is normally not a good indicator, investors should know by now that Tesla plays by its own rules. Despite a fundamental picture that would make traditional investors squirm, the stock has continued to climb higher—to the tune of nearly 70% this year—and it’s showing no signs of stopping.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy... Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion.
Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why Tesla (TSLA) Stock Is Gaining Today
Shares of Tesla (TSLA - Free Report) gained more than 3% in early morning trading hours on Tuesday. The move comes as the electric carmaker celebrates its Model X being awarded the highest-ever SUV safety rating by the National Highway Traffic Safety Administration.
Indeed, the NHTSA confirmed today that the Model X successfully earned a 5-star rating in every category and sub-category tested for.
“That means that in the event of a serious crash, Model X occupants have an overall 93% probability of walking away without a serious injury – a testament to our commitment to building the safest cars on today’s roads,” Tesla said in a blog post.
Interestingly enough, out of all the vehicles tested by the NHTSA, only the Tesla Model S ranks better than the Model X in terms of injury probability to passengers. Today’s news once again confirms to investors that Tesla is committed to providing a high-quality product to the world.
TSLA is likely also moving higher thanks to short covering. On Friday, as the technology sector was getting slammed, Tesla slumped after notable short-selling research firm Hedgeye called the stock its “best short idea” (also read: Shorts Attack NVDA, TSLA and RLGT).
Hedgeye is known for making snap calls and cashing in on the ensuing slumps, and that seems to be exactly what happened on Friday. Sellers were out in full force, but the drop eventually found a bottom. Now, on the back of more good news about the company, shorts might be feeling the pressure to cover.
Of course, we do have to mention that Tesla currently sports a Zacks Rank #4 (Sell). This ranking is a result of the company’s disappointing results in the prior quarter, which caused analysts to reduce their estimates. Remember, the Zacks Rank is heavily influenced by these estimate revisions, so it was this activity that caused the stock’s rank to take a hit.
And while a Zacks Rank #4 (Sell) is normally not a good indicator, investors should know by now that Tesla plays by its own rules. Despite a fundamental picture that would make traditional investors squirm, the stock has continued to climb higher—to the tune of nearly 70% this year—and it’s showing no signs of stopping.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy... Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion.
Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>