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Tesla Stock News and Forecast: What to expect from TSLA as it unveils earnings on Wednesday

  • Tesla will report Q3 earnings after the close on Wednesday.
  • Delivery numbers already released have set the bar low.
  • Further clarity over China and cost control measures are key.

Tesla (TSLA) will get earnings season off to a hectic start this Wednesday. The stock is under pressure along with many others from the ongoing bear market in stocks and bonds. Tesla too is suffering from the lack of interest in former high-growth but high-valuation names as investors fix instead on more defensive value criteria. By these measures, Tesla should struggle as it still trades on a trailing P/E of over 60. 

Tesla stock news

Tesla will update the market when it releases earnings after the close on Wednesday. This is one of the most anticipated releases of the whole season along with Apple (AAPL). We already have delivery data, which was somewhat underwhelming, so earnings will show how this disappointment has impacted the bottom line. Margins will be the obvious metric to focus on as will future guidance. Telsa is expected to post earnings per share (EPS) of $1.03 and revenues of $22.2 billion. Q3 delivery data has already pushed some of the bad news into the price.

Tesla announced Q3 deliveries at 344K when analysts had been expecting 358K. Delivery data came out on the weekend of October 1, and on Monday, October 3, Tesla lost over 8%. Since the delivery data was released Tesla stock has fallen over 20%. Have investors already penciled in the bad news then, thus increasing the risk-reward in the event of a better-than-expected number? 

Tesla stock forecast

We can see clearly the delivery data sell-off from $265 down to $205. This is now key support, but the selling pressure intensified last Friday. Tesla closed lower by over 7%. That may present a short-term trading opportunity. Also things may appear stretched. The stochastic indicator is oversold, and the Relative Strength Index (RSI) is getting close to a similarly oversold signal. $205 is a strong support, having been the June low. 

Tesla daily chart