Can Earnings Drive TSLA To Its 52-Week High?

Tesla, Inc. (TSLA) will post its financial results for the second quarter of 2023 after market close on Wednesday, July 19, 2023. (1)

Wall Street expects the electric vehicle (EV) manufacturer to earn $0.82 per share (EPS) with revenue of $24.57 billion. Both numbers are above last year’s $0.76 and $16.93 billion, for EPS and sales respectively. (2)

TSLA shares have risen sharply since late April when the stock traded near $150. Shares closed at $271.99 on Wednesday, July 12, 2023. Looking at the EV makers chart, TSLA shares have clearly defined technical boundaries, in our opinion.

Shares recently dipped following an extended overbought period and set a support level at $240.70 and a top at $280.70. Next Wednesday’s financial scorecard announcement will likely put support or resistance to the test.

An enthusiastic response to Tesla’s earnings would likely put the stock on course for a date with its 52-week high of $314.67. (3) On the b-side with a negative response, $240 is the first safety net. If that fails to hold, then Telsa’s rising 50-day moving average of $219.20 is in the same neighborhood as previous resistance turned support.

With Tesla, Inc. (TSLA) appearing to have nearly equal parts of possible upside and downside, investors looking to trade earnings might consider out of the money call and put options where Telsa’s price change outweighs the total cost of the options. Investors who feel confident about one side of the trade or the other, could take options positions with Delta in the vicinity of 0.80.

It’s important to note that trading earnings and options is highly speculative and only for the most aggressive investors who can afford to lose money in short order.

Rich Meyers


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