After a big earnings report last Wednesday, shares of Tesla Inc. (NASDAQ: TSLA) ended last week down 5% from their pre-earnings high. That might sound bearish, but context is everything. The stock had been rallying pretty steadily into Wednesday's report, and had gained 50% since April. So the pullback, especially one that started to reverse before the week even ended, feels more like a reset than a rejection.
That being said, at one point in the immediate aftermath of the earnings release, it looked like things could get ugly. The report showed revenue down almost 12% year-over-year, and it wasn't a blowout beat by any means. But with earnings landing in line at 40 cents per share and margins up compared to Q1, the results came in better than feared.
