CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Tesla Q1 earnings strong deliveries unfavourable headlines

Article By: ,  Senior Market Analyst

When:

Monday 26th April after the close

What to watch?

Expectations:

EPS of $0.77

Revenue of $10.33 billion.

Deliveries

Tesla’s vehicle delivery numbers beat forecasts at 185,000 in the first three months of the year. This was ahead of consensus estimates and bodes well for the year ahead. Deliveries are expected to pick up firmly in the second half of the year. Expectations are for full year deliveries at 831,000. Guidance for full year deliveries has the potential to move the market so watch for any number that is notably above or below this figure.

Competition

Results come Tesla trades 20% off its all time high. With competition increasing there is a chance that Tesla will start to lose some market share. More traditionally focused automobile makers such as VW, General Motors and BMW are stepping up their focus and operations towards EVs.

That said, demand is also expected to start increasing for EVs as governments across the globe make pledges to cut carbon emissions and boost the sustainability of cities and countries.

Self-driving car

Tesla’s results also come at a time when questions are being raised over its autopilot self driving system. Following a crash earlier this week, Tesla shares came under some pressure. In order to really stand out from its competitors Tesla would need to see significant progress towards the self-driving car goal. Given this week’s headlines we could still be some way off here.

Where next for Tesla share price?

Tesla continues to trade above its ascending trend line dating back to mid-March in an established bull trend. It also trades above its 50 & 100 EMA however, more recently the move is stalling. A move above $785 in needed for the buyers to gain traction and the trend resume its upwards march.

Strong earnings could prompt such a move, opening the door to the all time high at $900. A move below $665 100 EMA could see the sellers gain traction and push the prices towards support around $630 the ascending trendline.

For now, much of the good news is probably baked into the price. Very impressive guidance or huge developments in the  self driving car would be needed to drive the share price significantly higher.

Learn more about Tesla


StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024