Stock of the day: Tesla

After today’s American session close, Tesla will publish their earnings for the last quarter of 2022. The expected numbers are 1.15 EPS and 24.68B in revenue. Interestingly enough, in the previous quarters, Tesla had been showing much better results than expected – for example, EPS was higher in the past 7 quarters. Will we be pleasantly surprised this time around, too?

We analyze the situation on Tesla quite often. The last time was in November, when we were bearish after the breakout of the neckline of the H&S formation. This was our view back then:

“That, in theory, activates this formation and brings a long-term sell signal (with a target well below 100 USD). In addition to this, the price managed to retrace more than 50% of the recent uptrend and also break lows from May and June (blue).”

That was spot on. The price pretty much collapsed at the end of the year, reaching 101 USD at the beginning of 2023. Since then, we have had a bullish correction that may accelerate further once the revenue is higher than the estimates. Technically, the most recent upswing is just a bullish correction. We still don’t have enough bullishness on the chart to claim a reversal. The long-term sentiment is still negative and so is our view on Tesla.