TSLA – Weekly Chart
The price of TSLA has slumped from resistance in the last week to $220.70 and the chart has a bearish tone that could bring risk into earnings. The stock is also very close to the previous downtrend resistance around $200 and that could be an important level again.
The much-anticipated robotaxi event failed to inspire investors to purchase more shares in Tesla. The event was short on real details over the timeframe and that led to a sell-off in the stock.
“This is still a carrot on a string,” one analyst said. “How many new investors will be willing to buy this expensive stock when the core auto business is slow and the company did not show how it will bring the rapid growth in the future?”
Ahead of the company’s earnings, Tesla has already published its delivery figures for the quarter, saying that it delivered 462,890 vehicles, a 6.4% increase from a year ago.
While the delivery numbers were below Wall Street’s higher estimates, they were the first quarter of annual delivery growth for 2024. Deliveries dipped by roughly 9% and 5% during Q1 and Q2. For Q3, analysts expect revenue to come in at $25.4 billion, up about 8% year-over-year, slightly ahead of estimates, while earnings are likely to be around $0.58 per share, compared to a consensus of $0.57 per share.
Tesla’s delivery growth over the quarter may have been supported by its recovery in China, where the company has faced intense competition from local rivals and slowing consumer demand. Elon Musk’s firm ramped up promotions in China, offering zero-interest loans of up to five years and upfront discounts on selected models.
The company does not disclose its Chinese delivery figures, but data from the China Passenger Car Association shows a 19.2% year-over-year sales increase for Tesla in September. US sales may also see a boost from promotions which ended in August, and higher sales of the Cybertruck may have likely contributed to Tesla’s Q3 performance.