Tesla Stock Earnings Preview: Why is TSLA up? Earnings due just after the close

Tesla releases results after the closing bell today, Monday, July 26.
TSLA has been largely trading rangebound along with the 200-day moving average.
Results to June should at least give some direction to the stock.

Ivan Brian FXStreet

Update: Tesla is making an early break higher ahead of the results being published after the close on Monday. The EV leader is up 2.5% at $659 at the time of writing with just over an hour gone from the open. An impressive gain but still nothing to get too excited about as a strong trend has yet to form. However short-term traders will be pleased to see TSLA stock retake the 9 and 21-day moving averages. Next target $700 and then $715.

Tesla has been holding steady around the 200-day moving average since the middle of June when the strong uptrend broke down. The move through $635 and $667 key resistance levels had been accurately called here at FXStreet, and the volume profile contributed to some strong moves and strong profits for those following the break. As we had also identified, the area from $690 to 715 was always likely to see Tesla stock get stuck in traffic (easy pun) as there was a lot of volume here. $715 was the next big resistance and the failure to break through here and even the psychological $700 level has seen largely directionless sideways trading. The 9 and 21-day moving averages show us this clearly with both flatlining. Hopefully, the results after the close today will at least give us a trend to follow for the next opportunities.

Tesla key statistics

Market Cap	$630 billion
Price/Earnings	651
Price/Sales	22
Price/Book	28
Enterprise Value	$753 billion
Gross Margin	23%
Net Margin	3%
Average Wall Street Rating and Price Target	Hold, $671

Tesla stock forecast

Making a strong forecast before results is a fool's game, but instead traders can focus on the key levels and work out a trading plan at these levels. Presently, $715 and $591 are the big volume-related levels to look at. A break above or below either sees the potential for the move to accelerate due to the volume profile chart seriously thinning out. Even if Tesla breaks the 200-day moving average, there is plenty of volume below to support the price. It is not too significant despite what many in the mainstream media will say. Yes, the 200-day is a key level, but not in this case. Look back to May and June, Tesla was yoyo-ing through the 200-day moving average constantly. It was not until it broke $635 that a trend was formed and things got interesting.

Earnings per share (EPS) are expected to come in at $0.96 on revenue of $11.2 billion. There will be a conference call at 1730EST/2230GMT. Details and a link to the live stream conference call are here.

Like this article? Help us with some feedback by answering this survey:

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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 loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.