Tesla earnings anticipation and market impact: what to expect
Tesla's stock movements after earnings reports have been notable, with an average shift of about 10.1% over the last eight quarters, according to Trade Alert data.
Options data revealed that traders in the options market predict Tesla shares will swing by about 10% in either direction by Friday.
Tesla‘s stock movements after earnings reports have been notable, with an average shift of about 10.1% over the last eight quarters, according to Trade Alert data.
Given Tesla’s current market capitalization of around $800 billion, such a move could result in an $80 billion swing in the company’s value.
Second-Quarter Margin and Future Plans
The EV maker is likely to report that its second-quarter margin has hit a more than five-year low. CEO Elon Musk is expected to focus on the company’s robotaxi plans and AI products during the earnings call.
Musk had initially announced that Tesla would unveil its robotaxi on August 8, but last week signaled a delay to October to accommodate a design change following a media report.
Trading Activity and Stock Performance
On Tuesday, Tesla’s options trading volume was relatively light, with approximately 770,000 contracts changing hands by 12:20 p.m.
Also read: Boeing Increases 20-Year Forecast For New Jetliner Deliveries
EDT, about half the pace of trading over the last month, according to Trade Alert data. Despite this lower trading volume, Tesla’s stock has appreciated about 70% over the last three months, driven by investor enthusiasm about the company’s plans to introduce new models by early 2025 using its current platforms and production lines.
Historical Stock Movements Post-Earnings
Historically, Tesla shares have often declined following the company’s earnings reports, falling in five of the last six quarters, according to Trade Alert data. On Tuesday afternoon, Tesla shares were down 1.5%, trading at $247.86.
Alphabet’s Quarterly Results
Separately, Alphabet is also expected to report quarterly results later on Tuesday. Options traders are preparing for a potential stock price swing of 6.3% in either direction, with the stock historically moving about 6.7% on average following quarterly results.
Overall, the market remains highly reactive to earnings reports from major tech companies like Tesla and Alphabet, reflecting both significant opportunities and risks for investors.
