Shares of electric-car maker Tesla (NASDAQ:TSLA) jumped higher on Thursday, climbing as much as 6.1%. Shares, however, pulled back after their initial surge higher. By 10:50 a.m. EDT, the stock was up only about 2%
The volatility in the stock price on Thursday follows Tesla's second-quarter earnings report on Wednesday afternoon, which largely impressed analysts. But with the growth stock up more than 500% in 12 months, there's good reason for shares to take a breather.
Tesla's top- and bottom-line performance for its second quarter came in well above analysts' average forecast. Revenue and adjusted earnings per share were $6.04 billion and $2.18, respectively. Analysts, however, were expecting revenue of $5.37 billion and adjusted earnings per share of $0.03.
One analyst, however, pointed out that the company's stronger-than-expected earnings per share during the period was driven by sales of zero-emission regulatory credits. Nevertheless, the results were impressive given that the company's main automotive factory was shut down for about half of the quarter.
A strong second quarter, however, was arguably already priced into Tesla's stock price, explaining why a pop in the share price may have been shortlived on Thursday.
Looking out to the rest of the year, Tesla management is optimistic. The company reinitiated its guidance for half a million vehicle deliveries this year after withdrawing that view at the time of its first-quarter update, when Tesla's California factory was shut down.