- Tesla stock recovers on Friday, but uncertainty remains high.
- TSLA to report earnings on Wednesday, July 20.
- Twitter also to report earnings on Friday.
Tesla (TSLA) stock continued its modest recovery on Friday and put in its third straight day of gains as the stock rebounded up to $720. The overall equity market recovered ground, but all focus will be on the upcoming earnings season that steps up a gear this week. Tesla itself will report earnings mid-week on Wednesday, and then Twitter (TWTR) will report on Friday. The Elon Musk/Twitter saga looks likely to continue for some time as the latest reports have him delaying any attempt by Twitter for a quick trial.
Tesla stock news
News flow is always high with this one. With earnings coming up this week, the noise around Tesla should increase substantially. The saga with Twitter will drag on for some time, especially as it appears Musk is attempting to lengthen the court case with Twitter. Tuesday is the first day of hearings set to decide on whether a quick trial will be in the cards or not, so keep an eye out. All news will likely subsume itself to upcoming earnings on Wednesday. This quarter has seen some unique challenges for Tesla with the Shanghai factory lockdowns the big "what if". Investors will have taken some relief from the recent delivery data. It was only just behind analyst estimates, and so there is hope that this quarter could yet live up to expectations and analyst estimates. Tesla is expected to post earnings per share of $1.83 on revenue of $17.1 billion.
Tesla stock forecast
Earnings will be the dominant theme, but look at some key levels to watch out for once the stock gets moving in either direction. $620 remains the key support, and Tesla has defended this level quite well on a number of occasions. If that were to break, then a move to $540 would be the first target. However, from the weekly chart below, we can see the worrying volume gap, which does not stabilize until $475. This means the move may accelerate.
If the report provides some relief, then we would expect a move up to near $900. The 50-day moving average at $875 and the 200-day moving average at $910 would be natural resistance points and a time for a rethink. The weekend recovery in Bitcoin will also be a welcome boost to the Tesla balance sheet, but overall Tesla remains underwater on its Bitcoin investment. However, it is small in the overall group scheme.
Tesla weekly chart
