Tesla Reports Earnings Wednesday. Here's How Much Its Stock Is Expected to Move
Tesla is in the midst of a shift from focusing on its traditional EV business to humanoid robots and robotaxis like the Cybercab.
Credit: Jacek Boczarski / Anadolu / Getty Images
Key Takeaways
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Tesla is scheduled to post earnings Wednesday afternoon, with the electric vehicle maker’s stock seen making a big move following the results.
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Tesla is in the midst of a transition to focus more on physical applications of AI, such as autonomous vehicles and humanoid robots.
Tesla is slated to report earnings after the closing bell Wednesday, with traders anticipating a big move from the electric vehicle maker’s stock following the results.
Current options pricing suggests that traders expect Tesla (TSLA) shares could swing up to about 6% in either direction by the end of the week. From Friday’s close, a move of that size could lift Tesla shares near $424, or drag them back down to $378, erasing some of their recent gains.
Shares surged 15% last week amid a broader rally, as investors cheered signs of progress in the company’s AI chip plans. Still, they remain nearly 20% off December’s highs.
Why This Matters to Investors
Investors will be watching closely Wednesday for updates on Tesla’s transformation and advances in applications of AI.
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Morgan Stanley analysts recently wrote that they will be looking for updates on Tesla’s robotaxi plans for the year, and that Tesla could lift its capital expenditures forecast as it spends on expensive new manufacturing efforts.
Tesla is seen posting first-quarter revenue of $22.23 billion, up 15% year-over-year, and adjusted earnings per share of 39 cents, up from 27 cents a year ago, according to estimates compiled by Visible Alpha. Earlier this month, Tesla’s first-quarter vehicle deliveries improved year-over-year, but not as much as analysts had hoped.
Wall Street analysts are divided on the stock, but lean more bullish than bearish. Of the 12 analysts with current ratings tracked by Visible Alpha, seven have called it a “buy,” compared to four neutral ratings, and one “sell.” Their average price target of $432 would suggest about 8% upside from Friday’s close.
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