Tesla Stock News and Forecast: TSLA stock suffers as Twitter earnings and US GDP drop

TWTR stock rallies 1% after earnings.
Tesla (TSLA) stock is also recovering after a Twitter-led collapse.
Twitter is still a long way short of Elon Musk's $54.20 bid.

Ivan Brian FXStreet

Twitter (TWTR) stock bounced a bit on Thursday after it reported earnings before the market opened. The release was slightly less significant than it otherwise might have been with Elon Musk's takeover offer still the dominant feature. Despite the $54.20 offer price TWTR stock remains some 10% below this level, which is a clear sign of the market's lack of faith in the deal getting across the finish line.

Twitter (TWTR) stock news: Revenues miss estimates

Twitter reported earnings per share (EPS) of $0.90 which beat the $0.87 estimate. Revenue though missed slightly, $1.2 billion versus the $1.22 billion estimate. Stock-based compensation rose 60% on the year and perhaps Elon Musk has this in his sights. Overall expenses at $1.33 billion were up about a third in the last year. Daily active users (DAU's) hit 229 million an increase of 16% versus last year.

There is no guidance or conference call due to the ongoing acquisition. Both sides have agreed to the acquisition so the fact that TWTR stock is trading 10% below is highly unusual in a merger with both sides agreeing. Clearly, merger arb players see the risk of the deal falling through as too high.

Tesla (TSLA) stock news: Negative US GDP blows more headwinds

Tesla has been overshadowed by Twitter of late. The collateral issue saw TSLA stock dump and it is attempting to recover slightly this morning. That is likely to change though as we type the US GDP release comes out unexpectedly lower. A major headwind for stocks. Dallas has reportedly chosen the Tesla Model 3 as its new police vehicle according to Electrek, but Model Y delivery times are getting ever longer according to Benzinga. Supply chain issues were mentioned at Tesla's last earnings release and inventories were down to only a few days.

The base Model Y long range now has a delivery time of February to May 2023. The Model Y Performance is due in June 2022. Higher prices look like meaning shorter delivery times.

Tesla (TSLA) stock forecast: No reason to change bearish outlook

Not much has changed, a slight recovery was always likely after the huge fall. The trend remains strongly bearish with $975 the key pivot and resistance. $700 is the next target, the most recent low.

Currently, there is no reason to change the bearish outlook. The poor US GDP number is not going to help.

TSLA stock chart, daily

*The author is short Tesla.

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

GBP/USD flirts with weekly highs in the Fed's aftermath

GBP/USD reversed early losses following the Federal Reserve decision to keep rates on hold and neared the 1.3360 level before shedding some ground. Focus shifts to Governor Kevin Warsh's speech, while the Bank of England will announce its monetary policy decision on Thursday.

EUR/USD extends rally pass 1.1450 on Fed's Warsh

EUR/USD trades at fresh weekly highs above 1.1450, following the Federal Reserve monetary policy decision to keep interest rates on hold. The statement showed policymakers remain confident in economic progress while blaming inflation on energy prices. The divided vote among officials put in doubt a September hike, leading to sharp US Dollar losses.

Gold hovers around $4,100 as Fed decision hits the USD

Gold surged following the Federal Reserve's decision to keep the benchmark interest rate unchanged at 3.50%-3.75%. Policymakers noted that inflation remains elevated and that economic activity is expanding at a solid pace despite elevated uncertainty, spurring doubts about a rate hike in September. XAU/USD peaked above $4,100, now battling to retain the level.

No soft target: Warsh vows to return inflation to 2%

The Fed left interest rates unchanged at 3.50%-3.75%, but the decision carried a distinctly hawkish edge as three officials voted for an immediate 25-basis-point increase. Chair Kevin Warsh reinforced that message, insisting there was no tolerance for a softer inflation target and warning that the Fed would not hesitate to act.

How the CLARITY Act unlocks Wall Street’s tokenization pipeline

The United States (US) Digital Asset Market Clarity Act (CLARITY Act), awaiting a full Senate floor vote, promises to unlock Wall Street’s potential to tokenize financial assets, including equities, US Treasuries, private credit, real estate and commodities at a scale that could supercharge the real-world asset (RWA) market from the current $17 billion level to $5.5 trillion by 2030, according to

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.