Tesla’s share price has had a muted open this Wednesday after it was reported that analysts have scaled down the earnings projections for the next quarter and full-year. As the earnings season approaches, the next quarterly forecast has been downgraded from 57 cents per share to 55 cents per share. FY earnings have also been scaled down from $1.83 to $1.75 per share.
It is not yet clear what prompted the earnings downgrade by several analysts, as first reported by MT Newswires. However, there is increasing competition in the EV market, with Reuters reporting that Volkswagen AG is planning to make EV the core products to be sold in Norway in 2021.
According to the report, Volkswagen is targeting to push its electric vehicles to make up 90% of its Norwegian sales numbers for 2021, with a proposed plan to use them to replace all fossil-fuel driven car sales in Norway by 2023.
Norway plans to ban the sale of petrol and diesel-powered vehicles in 2025 and has granted waivers on taxes for EV sales. Volkswagen has seized this initiative, and its ID3 EV model has outsold Tesla’s Model 3 in that country in the past month.
Technical Outlook for Tesla
Price continues to trade within the borders of the symmetrical triangle, with today’s candle now testing the upper edge of this triangle. A break above this border has to be accomplished with a 3% upside penetration, which should also see the price action clear the 430.63 resistance to the upside. This allows Tesla to push towards the 457.12 resistance.
On the flip side, a rejection at the borders takes Tesla share price towards 401.43, with a breakdown of the triangle extending this decline towards 368.52.
The next earnings call is scheduled for October 28, so the situation with the triangle should have cleared up before then.
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Daily Chart for Tesla
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