Tesla Stock Price Forecast Ahead of Q1 Earnings

The Tesla stock price declined to a low of $988, which was about 15% below the highest this month. However, the TSLA shares remained about 42% above the highest level this year. Its market cap has moved to $1.02 trillion as traders were waiting for the upcoming quarterly earnings. Other EV stocks had a difficult day, with the Didi stock price falling by over 16% while Lucid, Rivian, and Nio falling by over 7%.

Tesla stock price declined as concerns about Elon Musk’s acquisition of Twitter remained. The main concern is that acquiring Twitter will distract him from his duties at Tesla. Also, there are concerns that he will need to sell his Tesla shares to fund his acquisition. Still, most analysts believe that he will fund the acquisition by doing a leveraged buyout, which will leave his stake at Tesla almost intact.

The next key catalyst for the Tesla share price will be the upcoming earnings, which will come on Wednesday. Data compiled by SeekingAlpha shows that analysts expect that the company’s revenue rose to $17.7 billion in the first quarter. If analysts are accurate, this will be a better performance than the fourth quarter’s revenue at $17.72 billion. 

Similarly, they expect that the company’s earnings-per-share dropped to $1.84 from the previous $2.05. Tesla has outperformed analysts’ expectations in the past four straight quarters. Data published this year showed that the company produced over 305,000 cars and delivered 310k cars. The biggest concern is the rising costs considering that the price of all commodities has risen.

Tesla stock price forecast

Turning to the daily chart, we see that the TSLA stock price rose to a high of $1,240, which was the highest level on record in November. It then fell to $886 in January and rebounded to $1,210 on January 4th. Now, the stock is hovering at around the $1,000 level. It has also moved to the 50-day and 25-day moving averages, while the MACD has dropped below the neutral level.

Therefore, there is a likelihood that the stock will drop to the important support level at $886. However, this view will be invalidated if the shares move above the resistance at $1,100.