Tesla Q1 2022 earnings preview: Where next for Tesla stock?

When will Tesla release Q4 earnings?

Tesla is scheduled to release first quarter earnings for 2022 after the market closes on Wednesday April 20.

What are analysts expecting from Tesla Q1 earnings?

Consensus analyst expectations are for the automaker to report $2.27 in EPS on $17.8B in revenues.

Tesla Q4 earnings preview

Despite ongoing semiconductor shortages and the constant headlines generated from its mercurial CEO’s side projects, Tesla’s core business continues to grow consistently.

The company has already reported 310,048 new vehicle deliveries in Q1, incrementally higher than last quarter’s 308,650 deliveries “despite ongoing supply chain challenges and factory shutdowns.” Indeed, the company has consistently navigated the global chip shortage better than its rivals in recent years and expects to continue to increase its deliveries by about 50% per year moving forward.

Beyond the headline financial figures and total vehicle deliveries, traders will key in on a couple other key themes. First, Tesla’s profit margins will be closely scrutinized. More than many other automakers, Tesla has substantial pricing power based on the perceived quality and allure of its brand, allowing it to pass along higher supply chain costs to consumers.

Secondly, investors will eagerly await an updated production timeline for the company’s factories in German and Texas. Both factories began production in the last month and will focus primarily on the company’s Model Y mid-sized SUV, though the Texas factory will also produce the company’s highly-anticipated Cybertruck starting in 2023. The progress of these factories will be essential to the company’s plans to ramp up production dramatically.

Finally, Tesla has officially filed plans for a stock split (“stock dividend”) with the SEC. Of course, the finance textbooks will tell you that a stock split doesn’t change the value of the underlying company, often using the example of cutting a pizza into smaller slices, stock splits have nonetheless led to a bullish reaction in certain shares in recent years, so an update on that initiative could influence the stock as well.

Where next for TSLA stock?

Like many US stocks, TSLA has lost momentum in recent months, and the recent price action is best characterized as rangebound.

As we go to press, shares are showing signs of stabilizing around $1,000 with the 38.2% Fibonacci retracement of the recent rally at $980 and the 50-day EMA near $970 providing support. If the stock reports better-than-anticipated earnings, bulls could use the current support level as a springboard to take the popular stock back toward its early April highs in the $1100 zone. On the other hand, a disappointing earnings release could push TSLA down through support in the upper-$900s, clearing the way for a deeper retracement toward the Fibonacci retracements of the recent rally near $925 (50%) or $875 (61.8%) next.

Source: StoneX, TradingView

How to trade with City Index

You can trade with City Index by following these four easy steps:

Open an account, or log in if you’re already a customer

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
Search for the company you want to trade in our award-winning platform
Choose your position and size, and your stop and limit levels
Place the trade

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.