Tesla shares jumped 12.7 per cent to $294.14 overnight fuelling speculation that its third-quarter earnings will be upbeat.
Investors had expected the results to come next week or later, but the automaker clarified that it would release its financial report after the markets close today.
Separately, a long-time critic and short-seller Citron Research took a U-turn and said that it had a change of heart and is now betting that Tesla stock will rise.
The firm said in a research note that Tesla’s Model 3 sedan is a “proven hit” and serious competition from other automakers for the plug-in car market has not materialized, marking a sharp reversal from its previous stance.
$TSLA dropping earnings on top of $F tomorrow might be a bad sign for shorts. After reviewing all recent info on $TSLA dominating its categories, Citron is LONG Telsa for this quarter. Full report https://t.co/eZLSbtL0kg
— Citron Research (@CitronResearch) October 23, 2018
"Plain and simple — Tesla is destroying the competition.” — Citron, which was trashing Tesla just a few weeks ago, changes its mind! https://t.co/ftYxlipOHw
— Jay Yarow (@jyarow) October 23, 2018