Monday 26e April after closing
What to watch?
EPS of $ 0.77
Revenue of $ 10.33 billion.
Tesla’s vehicle deliveries exceeded expectations at 185,000 in the first three months of the year. This was ahead of consensus estimates and bodes well for the coming year. 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 significantly above or below that number.
The results come from Tesla trading 20% of its all-time high. With increasing competition, there is a chance that Tesla will start to lose market share. Automakers more traditionally focused on electric vehicles such as VW, General Motors and BMW are stepping up their focus and operations towards electric vehicles.
That said, demand is also expected to start growing for electric vehicles as governments around the world commit to reducing carbon emissions and strengthening the sustainability of cities and countries.
Tesla’s results also come at a time when questions are being raised about its autopilot autonomous driving system. Following a crash earlier this week, Tesla shares have come under some pressure. In order to truly stand out from its competition, Tesla would need significant progress towards the goal of the self-driving car. Given this week’s headlines, we might still be a long way from here.
What’s next for the Tesla share price?
Tesla continues to trade above its ascending trendline dating from mid-March in an established uptrend. It is also trading above its 50 and 100 EMAs, but more recently the move has stalled. A move above $ 785 is needed for buyers to gain ground and the trend to resume its upward march.
Strong earnings could prompt such a move, opening the door to an all-time high of $ 900. A move below $ 665,100 EMA could see sellers gaining ground and pushing prices towards support around $ 630 ascending trendline.
For now, a lot of the good news is probably built into the price. Very impressive advice or huge developments in the self-driving car would be needed to drive the share price up significantly.
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