The first Magnificent 7 stock will report earnings after the close. Tesla, which has been so magnificent, will report shortly after the close. What is expected?
Here’s a summary of Tesla’s expected financial performance in bullet form, including expectations versus past results:
- Expectation of winnings: Tesla is expected to report adjusted earnings per share (EPS) of $0.50. Last year this time they made $0.83. Not good.
- Expectation of income: Expected revenue of $22.22 billion, marking the first revenue decline in four years.
- Operating profit: Expected to reach $1.49 billion, a 40% decrease from the previous year.
Other topics of interest:
- First quarter deliveries: Reported at 386,810 vehicles, significantly lower than the estimate of 449,080.
- First quarter production: Recorded at 433,371 vehicles, also below the estimate of 452,976.
- Sales vs. production: The gap between sales and production of approximately 46,500 fewer vehicles increases concerns about falling global demand for Tesla vehicles.
The stock is trading up $3 or 2.09% today at 145.06. Yesterday, the price fell to the lowest level dating back to January 2023. This comes after reaching a high of almost $300 on July 19, 2023. The lowest price in 2023 reached $101.81.
IN 2023, the closing level at the end of the year was $248.48. At current levels, the price is down nearly 42% for the year. The high of the year was reached on the first trading day of the year.
Upside targets stand at $152.37, $160.51, then near the broken 61.8% and the 50-day MA near $176. Break below yesterday’s low and the price may eventually move closer to the 2023 low at $101.80 over time. Between the two, the target is $124.31, $115.60 before the low price of $101.81 (see chart below).
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