Date – After market close on 20 October 2021
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47 analysts cover Tesla – 22 have a buy rating, 12 a hold and 13 a sell. The consensus 12-month price target is $660, with the calls ranging from $1200 to $67.
Looking ahead, how do the quarterly numbers and guidance feed into consensus expectations for:
The market recently discounted its Q321 preliminary delivery numbers of 241k (+20% QoQ), which were a solid beat vs expectations. It seems the company is executing efficiently and that perhaps the market had overestimated their concerns of semiconductor constraints. While we’ve seen some boost to earnings expectations from the delivery numbers, further clarity on this point may be a catalyst for the share price in the earnings call.
Costs pressures, will also be in focus, as will be the case across S&P 500 companies in Q3 earnings calls and any guidance from Tesla that feeds into full-year gross margin expectations could influence shares. Narrative around how the new factories in Berlin and Texas are progressing could also inspire, as would detail on its plans for internal battery capacity.
(Source: Tradingview - Past performance is not indicative of future performance)
Tesla will always be at the mercy of broad market sentiment and with a beta to the S&P 500 of 1.62, if the index rolls over then you’ll likely see Tesla having a far more aggressive move (and vice versa). Working within a bullish channel, the market is long of Tesla into earnings and a closing break of $800 should see $825 come into play, possibly even targeting the January highs of $900.
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