Tesla (NAS100: TSLA) will release its latest earnings report this week with the stock hovering ahead of the all-time high.
TSLA – Weekly Chart
The price of TSLA has held the previous resistance level at $414.98 and that gives a platform for the company to move to $488.72. A negative reaction to the earnings could see the stock start another correction.
Tesla releases its Q3 earnings on Wednesday this week after strong deliveries boosted by the end of the tax credits. The Biden administration’s EV credit expired in Q3 and consumers rushed to take advantage of the scheme. That could make for a strong Q3 earnings release and the real test may come in the next quarter.
In Tesla’s deliveries report, the company produced more than 447,000 vehicles, delivered over 497,000 and deployed 12.5 GWh of energy storage. That was a record for deliveries and deployments.
The company is expected to report revenue of $26.6 billion, operating income of $1.58 billion, and gross margins of 15.9%.
The event will likely focus on the earnings call as investors want to hear more on the company’s AI and autonomous driving initiatives. Elon Musk’s commitment to the company may see a start to the planned rollout of robots and self-driving, with competition heating up in the latter.
Another update from Musk’s firm could be the planned launch of a CyberCab and RoboVan, which would be new purpose-built autonomous vehicles. Some analysts have said in recent quarters that Tesla needs some kind of refresh in the product line as EV competition continues to advance, especially in China.
Options trading metrics suggest a potential swing of 8% or more around the earnings report. A clampdown on China’s EV sector led to slower sales from market leader BYD and that could see opportunity for Tesla in the country. Tesla’s founder has a history of sometimes promising big releases that end up taking longer to deliver. It would not be surprising to see something new added to the product mix and the support and resistance levels are well defined near the highs.
Headlines surrounding the U.S.-China trade talks could have an effect on Tesla stock this week.
