Tesla revenue miss the focus as TSLA stock slides in premarket
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER- Tesla stock falls over 5% as earnings released post-session on Wednesday.
- Tesla beat on EPS but missed on revenue.
- Tesla CEO Elon Musk remains bullish on prospects for the EV leader.
Tesla (TSLA) reported earnings after the close last night, and without even looking at them we must assume they disappointed the market. Tesla shares quickly fell 3% and have not recovered in the premarket. Sentiment toward high-growth names was not helped by the continued spike higher in bond yields, but with earnings releases up until now largely coming in ahead of estimates for the broader market, hopes were high that Tesla could continue this trend.
Tesla stock news
However, it was not to be in the case for Tesla. While earnings per share (EPS) did come in ahead of forecasts at $1.05 versus $0.99 consensus, revenue missed what Wall Street was expecting – $21.45 billion versus $21.96 billion.
Elon Musk participated in the post-earnings conference call and was bullish on the prospects for the future of Tesla. He said he saw a path for Tesla to be worth more than Apple and Saudi Aramco combined.
“I can’t emphasize enough [that] we have excellent demand for Q4, and we expect to sell every car that we make for as far into the future as we can see,” Musk said. “The factories are running at full speed, and we’re delivering every car we make and keeping operating margins strong."
Tesla did keep margins steady at 27.9%, which was an achievement in the inflationary environment. Tesla runs some of the highest (I think the highest) margins in the auto business, which is used to partly justify its high P/E ratio as well as its strong growth historically. Revenue, while missing estimates, was over 50% higher than a year ago. The company maintained its guidance for an over 50% growth rate in deliveries over a multi-year time frame.
Tesla stock forecast
Here we go again with another test of support at $207 coming up. The rise in bond yields is not helping Tesla's cause and added pressure from earnings could see the $207 level finally break. That would in my view lead to a target of $160, which is the lower trend line and the 200-week moving average. If $207 can hold, then a period of stabilization would target $254 and the gap to $266. That will need a broad equity market rally, I believe, as sentiment toward Tesla will be clouded by this earnings report. $207 is the key pivot.
Tesla 20-hour stock chart
- Tesla stock falls over 5% as earnings released post-session on Wednesday.
- Tesla beat on EPS but missed on revenue.
- Tesla CEO Elon Musk remains bullish on prospects for the EV leader.
Tesla (TSLA) reported earnings after the close last night, and without even looking at them we must assume they disappointed the market. Tesla shares quickly fell 3% and have not recovered in the premarket. Sentiment toward high-growth names was not helped by the continued spike higher in bond yields, but with earnings releases up until now largely coming in ahead of estimates for the broader market, hopes were high that Tesla could continue this trend.
Tesla stock news
However, it was not to be in the case for Tesla. While earnings per share (EPS) did come in ahead of forecasts at $1.05 versus $0.99 consensus, revenue missed what Wall Street was expecting – $21.45 billion versus $21.96 billion.
Elon Musk participated in the post-earnings conference call and was bullish on the prospects for the future of Tesla. He said he saw a path for Tesla to be worth more than Apple and Saudi Aramco combined.
“I can’t emphasize enough [that] we have excellent demand for Q4, and we expect to sell every car that we make for as far into the future as we can see,” Musk said. “The factories are running at full speed, and we’re delivering every car we make and keeping operating margins strong."
Tesla did keep margins steady at 27.9%, which was an achievement in the inflationary environment. Tesla runs some of the highest (I think the highest) margins in the auto business, which is used to partly justify its high P/E ratio as well as its strong growth historically. Revenue, while missing estimates, was over 50% higher than a year ago. The company maintained its guidance for an over 50% growth rate in deliveries over a multi-year time frame.
Tesla stock forecast
Here we go again with another test of support at $207 coming up. The rise in bond yields is not helping Tesla's cause and added pressure from earnings could see the $207 level finally break. That would in my view lead to a target of $160, which is the lower trend line and the 200-week moving average. If $207 can hold, then a period of stabilization would target $254 and the gap to $266. That will need a broad equity market rally, I believe, as sentiment toward Tesla will be clouded by this earnings report. $207 is the key pivot.
Tesla 20-hour stock chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.