Tesla [NASDAQ: TSLA] was in the green on Wednesday trading. At the time of writing, Tesla is down a little in pre-market trading. The increased bullish sentiment around this stock is driven by news that it is growing its production capacity in California. The news came via a leaked email, and in it, the company’s automotive president said that they have lots of exciting new positions in Fremont California and at the Gigafactory in Nevada.
This is welcome news for investors, because it means the demand for Tesla cars is on the rise. It also means that the company could be preparing to launch new cars ahead of schedule. However, this is highly speculative as the company has no official plans for launching the model Y before 2020. As such, if it happens, it could be a huge bullish signal for Tesla in the sense that it would indicate strong and growing demand. Still, on the issue of demand, the email praises the company’s Q2 production achievements, both in terms of output and quality.
It collaborates Tesla’s Q2 numbers, which indicate that Tesla has already delivered 95000 vehicles. This represents a year-on-year growth of 134%. These numbers have beaten analysts’ expectations, since the average analyst consensus for Q2 was 91k vehicles. Tesla’s Q2 growth is driven by the positive reception of the Model 3, whose demand has been on a steady and consistent rise.
Bullish sentiment around Tesla is quite visible in its day chart. On Wednesday, Tesla was in a sustained rally, and was making higher lows all through the day. This indicates that every slight dip in the price was being bought up by optimistic investors. With bullish sentiment already on the rise, Tesla is likely to sustain bullish momentum in the near term.