Tesla’s 4th quarter earnings fell short of market expectations, leading the stock to lose more than 8% on market open. However, Tesla’s share price has clawed back most of those losses but is still down more than 2.9% on the day as of the time of writing.
Tesla’s revenues rose 46% when compared to the same quarter the previous year, coming in at $10.7 billion. However, its earnings of 80 cents per share did not meet the market expectation of 101 cents per share. The company’s financials were also boosted by sales of regulatory credits to the tune of $401 million.
The 8% drop at market open has been moderated, especially as analysts at Morgan Stanley have set a positive projection for the stock. Morgan Stanley projects rapid expansion and a cash flow that has been better than expected, as positives for the stock going forward.
Technical Outlook for Tesla
Today’s drop delivered an opening gap which allowed Tesla to break down the 864.01 support. The move towards the support level at 784.76 has stalled. Follow-through selling is required to break down this support; a move that could target the 693.75 price level with potential for attaining 654.12 as well.
On the flip side, an extension of the intraday recovery could retest 864.01. If this move is strong enough to break above this level, then 912.32 could beckon to bulls. A break of this new resistance sends Tesla towards new post-stock-split highs.
Tesla; Daily Chart