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Tesla Inc. Awaiting Quarterly Reports

10/18/2022 3:26 PM

Tesla Inc. stocks continue to trade within the short-term downtrend. At the end of last week, the price dropped to the area of 204.00, however, it may resume serious growth if strong financial statements for Q3 2022 are released, the publication of which is scheduled for Wednesday.

In early October, the management has already reported on the number of electric vehicles produced. So, in Q3, almost 366.0K cars were produced, and about 343.0K were put on the market, which is 54.0% and 42.0% more, respectively, compared to the same period last year. Positive production data strengthen investors' hopes for good financial statements of Tesla Inc. So far, it is expected that earnings per share adjusted for stock splitting in August of this year will amount to 1.01 USD, which is 63.2% more than last year, and the issue will grow to 21.9%, which is 58.9% more than a year earlier.

Nevertheless, a number of experts do not exclude that the company's management may soon announce a decline in prospects and a slowdown in profit growth amid the risks of a global recession and ongoing disruptions in supply chains. The state of major sales markets for Tesla Inc. continues to deteriorate, the economies of European countries are close to recession, which negatively affects the purchasing power of the population, and in China quarantine measures to combat the growing epidemic of coronavirus also do not contribute to an increase in demand for electric vehicles.     

Currently, the price is close to the middle line of the Bollinger Bands in the area of 226.00, the breakout of which will give the prospect of further growth to the levels of 250.00 (Murray [4/8]), 265.62 (Murray [5/8]). The key for the "bears" is the level of 203.12 (Murray [1/8]), if consolidated below it, we can expect a decline to the levels of 187.50 (Murray [0/8]) and 171.88 (Murray [-1/8]).

Technical indicators do not give a single signal: the Bollinger Bands are directed downwards, the MACD histogram is stable in the negative zone, and the Stochastic is reversing upwards.

Resistance levels: 226.00, 250.00, 265.62. | Support levels: 203.12, 187.50, 171.88.

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