Tesla, Inc. (NASDAQ:TSLA) expected to report third-quarter results after the bell on Oct. 23

Tesla, Inc. (NASDAQ:TSLA) expected to report third-quarter results after the bell on Oct. 23

Tesla, Inc. (NASDAQ:TSLA) expected to report third-quarter results after the bell on Oct. 23

Tesla Inc. is expected to report third-quarter results after the bell on Oct. 23, with more than the usual amount of scrutiny going into the Silicon Valley car maker’s quarterly update.

For the first time in more than a decade, Tesla TSLA, +0.72%  is looking at a year-over-year dip in quarterly revenue. Many on Wall Street also view the third-quarter results as a bellwether for Tesla’s hopes of returning to profits, and are keeping a keen eye on end-of-year guidance.

The sales drop is likely due to a mix of deliveries that have skewed heavily toward the Model 3, the company’s cheapest offering, putting profit margins at the center of Wall Street’s list of concerns for Tesla.

The company earlier this month reported third-quarter deliveries, its proxy for sales, that fell short of expectations. Tesla said it delivered about 97,000 vehicles in the third quarter, including 79,600 Model 3 sedans.

Analysts surveyed by FactSet expected the company to deliver about 99,000 vehicles, including 80,200 Model 3s. The company said its third-quarter orders were at a record, and it was entering the fourth quarter with an increase in its order backlog.

Tesla delivered 84,000 vehicles in the third quarter of 2018, including about 56,000 Model 3s. For the year, Tesla hopes to deliver 360,000 to 400,000 vehicles, which means it needs to deliver at least 105,000 vehicles in the fourth quarter to hit the lower end of that goal.

On Oct. 23, a conference call with analysts at 6:30 p.m. Eastern is to follow results.

Here’s what else to expect:

Earnings: Of 33 analysts polled by FactSet, Tesla is expected to report an adjusted loss of 45 cents a share for the quarter. That would contrast with an adjusted profit of $2.90 a share in the year-ago period. Tesla reported GAAP and adjusted per-share profits in the third and fourth quarters of 2018.

Tesla is also expected to provide more details on a timeline for the Model Y, the compact SUV it hopes to launch in fall 2020. Personnel news is also not outside the norm for Tesla; at its second-quarter-results conference call, Tesla announced the departure of its No. 2, Chief Technology Officer J.B. Straubel.

In any case, third-quarter results “could represent a fork-in-the-road moment for (Chief Executive Elon Musk) & Co.,” analysts at Wedbush, led by Dan Ives, said in a recent note.

Tesla, they wrote, “either successfully navigates this next step in its evolution and shows the profitability trajectory or otherwise stays on this treadmill of kicking the earnings can further down the road.”

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 239.05.

The projected upper bound is: 278.27.

The projected lower bound is: 242.39.

The projected closing price is: 260.33.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 90.5351. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 15 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 66.22. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 58 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 160.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 4 period(s) ago.

Rex Takasugi – TD Profile

TESLA INC closed up 1.860 at 259.750. Volume was 100% below average (consolidating) and Bollinger Bands were 12% narrower than normal.

Open     High      Low     Close     Volume___
257.390 262.100 256.920 259.750 107
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 245.40 234.24 255.24
Volatility: 39 49 58
Volume: 7,839,128 6,690,450 9,036,071

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TESLA INC is currently 1.8% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of TSLA.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TSLA.O and have had this outlook for the last 26 periods.

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