Tesla Earnings Due

All eyes will be on Tesla today as Elon Musk’s flagship firm prepares to post Q3 results at the market close. Following a bumper start to the year, which saw the stock rising around 190%, Tesla shares then corrected lower by almost 30% and are now caught mid-range between those pullback lows and the YTD highs. The correction lower came despite the group posting a bumper set of Q2 results with traders put-off by what Musk noted at the time was a concerning outlook for the US economy.

Risks Around Today’s Forecasts

Looking to today’s forecasts, Wall Street is forecasting EPS of $.73 on revenues of $24.2 billion. If seen, this will mark a slight decrease on the prior quarter’s earnings and, depending on the details of the report and the outlook offered, might see Tesla shares coming under fresh selling pressure. A recent strong of price cuts on Tesla vehicles is cited as the reason for the expected softening of results. Additionally, a slower than projected rollout of the keenly anticipated Cybertruck is also likely to weigh on sentiment. However, given the lower expectations, if Tesla earnings surprise to the upside today this might well see the market caught off-guard leading to a firm rally in the company’s stock.

Technical Views

Tesla

Price action has stagnated recently around the 255.61 level. 276.74 has held above as resistance for now, while the bull channel lows sit below as key support to watch. If we break below the channel, 207.71 is the next support to watch. To the topside, any break of 276.74 will turn focus back to 313.11.