Tesla Q4 Earnings Preview – Can a strong report turn the stock around?

TSLA comes into Wednesdays Q4 earnings report having taken a beating so far is 2024, with the stock price down almost 16% in the first 4 weeks of the new year. Q4 was a quarter that saw the company’s deliveries trend higher, driven by stronger sales of its entry-level vehicles following price cuts, an upside surprise may be on the cards lending relief to stockholders after a big miss in Q3 earnings.

Earnings reports for Tesla have been volatile to say the least as mixed results are apparent in the past four quarterly earnings reports, where we have seen two beats and two misses. For this earnings report, the company is expected to report the same earnings per share (EPS) as Q3 , where they missed by 17% , seeing TSLA stock drop around $20 as a result.

Looking at the chart TSLA has been trading in a descending channel since August 2023 with a support zone possible between the October ’23 lows of 194.62 and the bottom of the channel around 180.71 if TSLA has another miss. To the upside on a beat the support/resistance level at 232.20 would be the level to watch. Downside could also be limited by the extreme oversold reading we already see on the daily RSI indicator.

Another positive sign for the bulls is skew in the options market currently, with equidistant options from the stock price to the downside (puts) and upside (calls) showing a higher price for calls, while this doesn’t mean the stock price is going higher, it does indicate that options traders are in the belief that a big move to the upside is slightly more likely.

TSLA is due to release Q4 earnings after the US market close on Wednesday 24^th of January where they are expected to report earnings-per-share (EPS) of $0.73 on $25.76 billion in revenue.