Tesla Earnings Due

As Tesla gears up to announce its Q4 earnings later today, the stock is sitting around 30% down from the 2023 highs recorded last summer. The undershoot on Q3 earnings put an end to a 10-quarter winning streak for Tesla and traders are now keen to see whether earnings were back in the green last quarter or if the group’s sales slump continued.

Profitability & Price Cutting

On the numbers front, the market is looking for Q4 EPS of $0.73 on revenues of $25.64 billion which would mark a slight uptick from the prior quarter, if seen, though still slightly down year-on-year. One of the main concerns for investors recently is the price cutting we’ve seen at Tesla and its impact on profitability. The market will now be looking to see if price cutting is likely to continue, meaning a further squeeze on margins, or if a profitability ‘bottom’ has been reached. If the latter, then we can expect investors to cheer the news, taking the stock higher.

Deliveries in Focus

Additionally, traders will be eagerly watching the group’s new deliveries target for 2024. On the back of posting a new record for deliveries in Q4 last week, signs that delivery numbers are expected to increase this year should help bolster sentiment. With Tesla shares sitting at a key support level, today’s figures will be make or break for the stock near-term, particularly given the shifting Fed backdrop which is fuelling a stronger Dollar once again.

Technical Views

Tesla

The failure in Tesla stock at the retest of the broken bull channel lows and the 255.61 level has seen the market reversing sharply lower. Price is now sitting on support at the 207.71 level once again. With momentum studies bearish, the market is at risk of a break lower here, putting 170.22 in view as the next support to note.