- TSLA stock closes slightly higher on Tuesday.
- Tesla is due to release earnings after the market closes on Wednesday.
- Delivery numbers already disappointed earlier in the month.
All eyes will turn to Tesla (TSLA) on Wednesday as the FANGT sector looks to reestablish its leadership role in the overall health of the stock market. So far, fallen angel Netflix (NFLX) has kept up its side of the bargain with strong subscriber numbers seeing the stock rocket by up to 14% in Tuesday's afterhours session. Some worrying rumors have been circulating about Apple (AAPL) cutting iPhone production numbers, so we will have to bide our time there. Tesla has already perhaps gotten some bad news out of the way when it fell sharply following the release of delivery numbers earlier this month.
Tesla stock news
Deliveries for Q3 fell short of what analysts had been expecting – 343,830 versus 358,000 expected. Tesla also produced 365,923, so the reduced delivery numbers raised some concerns among investors. Tesla's stock price immediately fell just under 9% the next trading session and has been under constant selling pressure since. For Q3 earnings, the expectation is for EPS to hit $1.01 and revenue to come in at $22 billion.
Elon Musk has apparently confirmed on Twitter he will attend the conference call. Investors will be looking for a range of clues for future performance. FX headwinds are a thorn for all US-based globalized companies, and if not hedged FX headwinds are posing significant challenges. Updates about the demand profile in China are also crucial as this is an increasingly important market for Tesla.
Given the already sharp sell-off following delivery news, it would appear to slant the risk-reward slightly to the upside in my view. Elon Musk is always upbeat and is likely to remain so. Whether this is enough to fend off some of the doubters remains to be seen. Wall Street remains of a similar view despite some concern over these delivery numbers. Morgan Stanley had said that Tesla was looking at demand destruction, but Citi and Wedbush remain positive on the prospects post-earnings.
Tesla stock forecast
The key support at $207 has again been held, and that level becomes key. If Tesla breaks lower, then it will likely test the lower end of the trend support and 200-week moving average at $160. Already we see both the Relative Strength Index (RSI) and Stochastic showing a modest oversold signal. Holding $207 can see Tesla test $254 reasonably quickly as trend-following and some short covering pushes the move higher.
Tesla (TSLA) stock daily
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.