Key Points
- Earnings season is upon us, and the results so far have been great.
- Elon Musk is to face questions over the exciting new “robotaxi” project.
- Price action in TSLA stock is muted, but that could change when the earnings are released.
- The NASDAQ is poised for an explosive move; can it test all-time highs?
Earnings Season Has Arrived
This is a very exciting time to be involved in the stock market, with Q3 earnings season now being upon us. This week’s headline will be Tesla’s earnings, and next week will be a blockbuster with Amazon, Alphabet, Apple, and Meta releasing their earnings results.
Anyone feeling one edge about the performance of companies in the S&P500 may be relieved to hear that 80% of the third quarter earnings released so far have beat the estimates. The Bulls hope that the trend will continue in the coming days.
Tesla Q3 Earnings Preview
After the bell on Wednesday, Tesla will release its third-quarter earnings to the public. It is expected to reveal a 60 cents earnings per share (EPS) figure on sales of $25.5bn. Last year, the third quarter results were a 66 cents EPS on sales of $23.4bn. The only thing guaranteed is volatility, with an average stock price swing of plus or minus 9% in the past two years.
Most of the volatility will likely come from the questions facing Elon Musk. There has been much speculation around the new “robotaxi” project, but with the lack of details available, it has been hard to get excited about. This could change should Elon Musk have a real plan and be willing to share details. Furthermore, traders will want to hear that Tesla is still on track to deliver a more affordable model next year.
NASDAQ Poised For Explosive Move
The price action in TSLA stock and others has been muted, so it should be no surprise that this is showing in the NASDAQ, too. The current price is 20,300, roughly in the middle of the consolidation range in which the price is stuck.
It may require a strong Tesla earnings report to push the NASDAQ beyond 20,500 and up to all-time highs. However, should it disappoint, the bottom of the range and 20,000 will likely be tested. The RSI hovering around 50 reflects the need for a catalyst, but it normally does not take too long until one is found.
Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.
