- Tesla stock recovers on Friday, but uncertainty remains high.
- TSLA to report earnings on Wednesday, July 20.
- Twitter also to report earnings on Friday.
Tesla (TSLA) stock continued its modest recovery on Friday and put in its third straight day of gains as the stock rebounded up to $720. The overall equity market recovered ground, but all focus will be on the upcoming earnings season that steps up a gear this week. Tesla itself will report earnings mid-week on Wednesday, and then Twitter (TWTR) will report on Friday. The Elon Musk/Twitter saga looks likely to continue for some time as the latest reports have him delaying any attempt by Twitter for a quick trial.
Tesla stock news
News flow is always high with this one. With earnings coming up this week, the noise around Tesla should increase substantially. The saga with Twitter will drag on for some time, especially as it appears Musk is attempting to lengthen the court case with Twitter. Tuesday is the first day of hearings set to decide on whether a quick trial will be in the cards or not, so keep an eye out. All news will likely subsume itself to upcoming earnings on Wednesday. This quarter has seen some unique challenges for Tesla with the Shanghai factory lockdowns the big "what if". Investors will have taken some relief from the recent delivery data. It was only just behind analyst estimates, and so there is hope that this quarter could yet live up to expectations and analyst estimates. Tesla is expected to post earnings per share of $1.83 on revenue of $17.1 billion.
Tesla stock forecast
Earnings will be the dominant theme, but look at some key levels to watch out for once the stock gets moving in either direction. $620 remains the key support, and Tesla has defended this level quite well on a number of occasions. If that were to break, then a move to $540 would be the first target. However, from the weekly chart below, we can see the worrying volume gap, which does not stabilize until $475. This means the move may accelerate.
If the report provides some relief, then we would expect a move up to near $900. The 50-day moving average at $875 and the 200-day moving average at $910 would be natural resistance points and a time for a rethink. The weekend recovery in Bitcoin will also be a welcome boost to the Tesla balance sheet, but overall Tesla remains underwater on its Bitcoin investment. However, it is small in the overall group scheme.
Tesla weekly chart
The author is short Twitter and Tesla.
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
AUD/USD faces strong resistance around 0.6800
Further weakness saw AUD/USD retreat further and add to Monday’s decline in response to the slight advance in the US Dollar and declining prices in the commodity space.
EUR/USD: Sellers lack conviction so far
EUR/USD revisited the sub-1.0900 region before regaining balance and close Tuesday’s session with marginal gains amidst some loss of momentum in the Greenback and rising bets of an interest rate cut by the Fed in September.
Gold reaches fresh record highs above $2,460
Following a short-lasting correction in the early American session, Gold gathers bullish momentum and trades a new all-time high above $2,450. The benchmark 10-year US Treasury bond yield stays in the red near 4.2%, fuelling XAU/USD's rally.
Meme coins rally amidst Ethereum ETF approval hype, PEPE extends gains by 10%
PEPE, a meme coin built on Ethereum, and based on a popular frog-themed meme has rallied in double digits on Tuesday. As crypto market participants await the Securities & Exchange Commission’s approval of a Spot Ethereum ETF, meme coins have started recovering from their decline in the first week of July.
Despite upside surprise, Retail Sales show lost momentum
Despite lower sales at autos dealers and at gas stations, retail spending held steady in June. Excluding those categories, it was the best month since January 2023, and that means upside risk for Q2 consumer spending.