Unpacking Tesla's Next Earnings Release
Fiona Cincotta | Jan 24, 2020 12:44PM ET
h3 When:/h3 h3 /h3
After the U.S. market close on 29 January.
h3 Expectations:/h3Revenue $6.45 billion -4% from previous year but +10% from previous quarter
h3 $100 Billion Company/h3EPS $1.65 -15%
Tesla (NASDAQ:TSLA) has surged 12% so far this week and is set to continue advancing in the final trading session of the week. The move higher is part of a 140% rally over the past 4 months, helped by a surprise Q3 profit in October. The electric car maker is now worth over $1 billion, the second most valuable car maker after Toyota Motor Corporation (NYSE:TM).
h3 Why?/h3This week’s gains come following analyst Daniel Ives of Wedbush, upping the price target for the electric car maker ahead of earnings due to be released next week. Earlier this month Tesla (NASDAQ:TSLA) delivered its first China made Model 3 sedans, it also announced that it delivered a record 112,000 vehicles in Q4.
h3 Obstacles/h3Early indications suggest that production and demand out of Shanghai are very strong. Furthermore, Tesla (NASDAQ:TSLA) has the ability to ramp up production significantly to satisfy growing demand in the key China region. The goal of 360,000 vehicles for the year is a sign that Tesla is a serious industry player. This is adding to the bullish outlook on the stock.
However, there are still some major obstacles ahead for Tesla (NASDAQ:TSLA): the elimination of U.S. tax credits for Tesla buyers, the slowing of the car market in China and then of course Elon Musk himself, who not so long ago wanted to take the company private.
h3 Bottom Line/h3 h3 Analysts’ Recommendations/h3Earnings and are not expected to disappoint given robust demand in China and Europe. In addition to Q4 financial results on January 29, investors will be watching 2020 vehicle delivery guidance.
Analysts on the street are still divided over the stock: 10 rating buy / 10 hold / 16 sell
h3 Chart Thoughts/h3Telsa trade firmly above its 50, 100 & 200 sma on a clearly bullish chart. The stock is just entering into over bought territory according to the RSI.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.