Tesla Inc will report its first-quarter earnings on Tuesday after market hours. Wall Street expects the company to earn 41 cents per share on revenue of $21.35 billion for the quarter. Investors are closely watching to see if CEO Elon Musk can turn the narrative around a slumping stock.
Stock Performance
The stock has experienced a significant decline, down 36.36% year-to-date, despite being up 69.93% over the past year. As investors await the earnings report, they are eager to see if the company can meet or exceed Wall Street estimates.
Technical Analysis
The charts indicate a bearish trend for Tesla stock. The share price is below the five, 20, and 50-day exponential moving averages. Additionally, the stock is flashing bearish signals across all major simple moving averages:
- Eight-day SMA: $248.73 vs. TSLA stock at $231.79
- 20-day SMA: $333.49
- 50-day SMA: $276.67
- 200-day SMA: $249.33
The Moving Average Convergence Divergence (MACD) sits at a negative 18.29, signaling more downside. However, a Relative Strength Index (RSI) of 37.06 suggests the stock is heading towards being oversold, potentially setting up a bounce if earnings surprise to the upside.
Analyst Consensus
The consensus analysts rating on Tesla stock stands at a Buy, with a consensus price target of $298.14. Recent analyst notes from Piper Sandler, UBS, and Mizuho suggest an average price target of $321.67, implying a 39.07% upside from current levels.
Conclusion
As Tesla prepares to report its Q1 earnings, investors are cautiously optimistic. While the stock has experienced a significant decline, the company’s ability to meet or exceed Wall Street estimates could be a turning point for the stock. With a consensus analysts rating of Buy and a potential upside of 39.07%, Tesla’s Q1 earnings report will be closely watched by investors and analysts alike.