The time for earnings announcements is approaching, with the leading electric vehicle (EV) producer Tesla (NASDAQ: TSLA) set to unveil its Q2 performance.
Of significant note is the upcoming release on June 23, which will bring insights into EV demand and recovery progress within the sector after a sluggish start to the year.
In recent times, Tesla’s market performance has stood out, witnessing monthly growth surpassing 30%. The TSLA shares have managed to overcome the $200 barrier and are now eyeing $250. At the most recent market closure, the TSLA stock was priced at $239.
Ahead of the market’s opening, Tesla is displaying positive signals in the pre-market hours. The stock is up by 2%, trading at $244.
Forecasts suggest that Tesla may report earnings per share (EPS) of $0.61, down from the previous year’s $0.91 for the same quarter, with anticipated revenues of $24.3 billion. Despite this indicating a more moderate performance compared to past quarters, the recent surge in Tesla’s stock value by 31% over the last month implies a level of optimism already factored in.
The Q2 2024 figures for Tesla’s production and deliveries illustrate robust performance, with 443,956 units delivered and 410,831 vehicles manufactured, marking a substantial increase from Q1 2024. These statistics underscore Tesla’s steady expansion and enhance confidence in achieving the annual target of 2 million EV deliveries.
Estimation on TSLA stock by ChatGPT-4o
In order to predict the post-July 23 stock movements, Finbold consulted OpenAI’s sophisticated AI tool, ChatGPT-4o.
According to the AI platform’s projection, an earnings beat by Tesla could propel the stock up by 3-5%, potentially reaching the range of $246-$251. Positive guidance, particularly regarding the 2024 2 million delivery target, could elevate the stock further, possibly touching $255 or higher.
On the flip side, falling short of EPS or revenue estimates may trigger a 5-8% downturn, pulling the stock to around $220-$227. Any revisions to annual delivery goals or financial benchmarks downwards could exacerbate the decline, pushing the stock under $220. Meeting expectations without surprises could see minimal movement for the stock, within 1-2%, in the range of $239-$244.
ChatGPT-4o also emphasized that external economic shifts, such as alterations in interest rates or economic data releases, might influence Tesla’s stock independently of its earnings outcomes. Announcements on Tesla’s technological advancements, new product launches, or market dynamics could also sway investor sentiments.
Expert views on TSLA stock
Elsewhere, analysts at TrendSpider mentioned in a recent X tweet on July 22 that Tesla has undergone a substantial technical breakout, surpassing a crucial resistance trendline, hinting at potential upward momentum.
The weekly candlestick chart shows that Tesla has broken through a long-established descending resistance trendline from late 2021, with an ascending triangle pattern reinforcing this positive outlook.
However, with the Relative Strength Index (RSI) at 98.8, prudence is advised. A high RSI signifies overbought conditions and points to a possible short-term pullback or consolidation. Historically, such elevated RSI levels are unsustainable and may trigger price corrections.
Should Tesla sustain its position above the breached resistance level, key levels to monitor are approximately $300 and $400. Conversely, the overbought RSI elevates the risk of a retracement, with potential support levels around $200 or lower.
Overall, analysts maintain a bullish outlook on Tesla, irrespective of the Q3 earnings outcome. For example, post the Q2 2024 production and delivery report, they have upgraded Tesla’s price target to $300.
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