Tesla, Inc. (TSLA) shares moved higher in after-hours trading after the automaker revealed better-than-expected fourth quarter financial results. Revenue rose 2.1% to $7.38 billion, beating consensus estimates by $300 million, and non-GAAP net income reached $2.14 per share, beating consensus estimates by 38 cents. Gross margins fell slightly during the quarter, but adjusted EBITDA came in at $1.18 billion, which was higher than the $1.02 billion that analysts expected.

During the quarter, Tesla delivered 19,475 Model S/X vehicles and 92,620 Model 3 vehicles. The company expects to deliver more than 500,000 vehicles this year, including Model Y vehicles by the end of the first quarter of 2020. Perhaps more importantly, the company expects to achieve positive free cash flow during the year.

Wedbush's Dan Ives raised the firm's price target on Tesla stock to $900, saying that hitting the 500,000 delivery threshold for FY20 is well within reach and that, based on Chinese demand scenarios, the company has the potential to hit one million vehicles delivered two years ahead of its original 2024 projections.

Chart showing the share price performance of Tesla, Inc. (TSLA)
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From a technical standpoint, the stock is poised to break out from prior highs of $594.50 to fresh all-time highs. The relative strength index (RSI) remains overbought with a reading of 77.36, but the moving average convergence divergence (MACD) remains in a bullish uptrend dating back to mid-December. These indicators suggest that the stock could see some near-term consolidation but that the intermediate trend is higher.

Traders should watch for some consolidation above trendline support at around $600 over the coming sessions. If the stock fails to break out, traders could see a move toward the 50-day moving average on the daily chart at $423.41 or to the pivot point at $393.63. If the stock breaks out higher, traders could see move into the mid-$600s over the coming sessions.

The author holds no position in the stock(s) mentioned except through passively managed index funds.