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Tesla Bulls Hold Their Ground Ahead of Earnings Even After Robotaxi Event Disappointed
$Tesla (TSLA.US)$ bulls are holding out hope for a positive earnings surprise that could push the stock price higher after a 9.3% decline since the company's unveiling of its long-awaited Robotaxi disappointed analysts and investors.
A day before the earnings results, the heaviest open interest in the options market for the electric vehicle maker is still in call options that give the holders the right to buy Tesla's stock at $232.50 by the end of the week. Volume on that contract remains muted even as the decline in the share price to $217.27 pushed the call options further out-of-the-money.
Only 4,170 of those $232.50 call options were traded as of 1:38 p.m. in New York, out of the 38,960 outstanding contracts, or what is known as open interest. That may signal optimism that the stock price could jump above that strike price after the earnings are released late Wednesday afternoon, potentially helping the contracts be in-the-money before they expire.
On average, analysts expect Tesla's adjusted earnings to rise 12% to 60 cents a share for the three months that ended Sept. 30, from a year ago, according to estimates compiled by Bloomberg. Revenue was seen rising 8.9% to $25.4 billion after the company reported a 1.2% gain in vehicle production.
The company has cut prices by 20% over the past year as it grapples with elevated inventory, making Tesla the worst auto brand in terms of resale value, Bloomberg Intelligence analysts wrote in a note Tuesday, citing cargurus.com and ISeeCars.
Analysts cut their full year outlook on Tesla vehicles sales to 1.79 million cars on Oct. 11, from 1.94 million in April, after the "underwhelming" Robotaxi event JPMorgan analysts said, citing estimates compiled by Bloomberg. "The outlook for next year (or the year after that) did not improve either," the analysts said in a note more than a week ago.
"Investors may seek details on the rollout of Tesla's sub-$30,000 vehicle" at the company's next earnings call with analysts, Bloomberg Intelligence analysts Steve Man and Peter Lau said in a note Oct. 18. "Growth in energy storage deployment could provide further upside to earnings."
Share your thoughts on Tesla in the comments section and let me know what you'll be looking at when quarterly financial results are released. And if you have a price forecast, please vote below.
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Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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Chak : Lmao
“long-awaited Robotaxi disappointed analysts and investors.” The corrected version is buy the hype sell the news by the institutions trap the retailers.
T-Pass : nothing to see here, just rhetoric to hype the price, no real company gains until late 25
Kief : I was actually hoping for shorts to lead… welp
Laine Ford : it hold to go back up it going make you
money
Laine Ford : money stock
73791523 : Bearish sentiment exhausted.
Dan’l : No way Waymo’s rubbing anything in Optimus’ face, buUut… Elon’s, maybe?
Leon 8888 : TSLA has always been a miracle stock that quickly rebounds after falling, accumulating experience from playing for a long time.
105671137 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
103677010 : noted
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