Tesla’s stock price has entered a phase of consolidation as investors refocus on the upcoming quarterly results. TSLA stock is trading at $720, a few points above the year-to-date low of $615. This price is also significantly below its all-time high of over $1,200. Tesla’s market valuation fell to around $746 billion.
Tesla Earnings Ahead
Tesla’s stock price has been relatively quiet for the past few days as investors await upcoming results. The firm will publish its results on Wednesday this week. Analysts polled by Reuters expect Tesla’s revenue to fall to more than $17 billion in the second quarter from $18 billion previously.
This decline will be due to the company’s challenges in China, a country that locked down in the second quarter. Indeed, recent figures showed that the company’s deliveries in China have fallen by around 18% due to these challenges.
Tesla’s profit is also expected to fall to around $1.88 per share, down from the $3.22 increase in the prior quarter. This trend will be due to the rising cost of doing business and the fact that Tesla is one of the largest Bitcoin holders in the world. The price of bitcoin fell sharply during the second quarter. Historically, Tesla has a good track record of beating analyst estimates.
Tesla’s stock price also firmed on ongoing issues surrounding Elon Musk’s acquisition of Twitter. Analysts believe Musk will be forced to acquire the company as long as banks are willing to provide financing. Additionally, Musk voluntarily decided to bid on a company that was not for sale. Therefore, Musk’s acquisition of Twitter is seen as a drop in TSLA’s stock price.
Tesla stock price prediction
My recent posts on TSLA stock price have been a bit bearish. In fact, I warned that the stock will likely fall to around $500 over the next few months. Turning to the daily chart, we see that Tesla shares have crashed below the 25- and 50-day moving averages.
The stock has also formed a bearish pennant pattern which is depicted in blue. This is usually one of the most bearish patterns in price action analysis. Tesla’s stock price also formed a triple top pattern. Therefore, the stock is likely to experience a bearish breakout as sellers target the key support at $600. A move above the resistance at $770 will invalidate the bearish view.
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