Will Tesla Stock Rebound on Earnings?

The price of Tesla stock has taken a beating the last couple weeks as it heads into the Q4 earnings announcement, this Wednesday after the close.

After topping out at $265 in late December the stock has seen aggressive selling with any attempted bounce being thwarted by the bears.

Announcements before Earnings.

So far in January Tesla has announced a couple moves that were additional catalysts to the sell off.

Most noticeable was more price cuts. Prices were cut in China on the Model Y and 3. That was followed up not long after with price cuts on the Model Y across many European markets.

This certainly did not help ease the selling pressure of late. Following that many analysts have lowered their price targets on Tesla coming into this earnings announcement.

Many of them are citing a weakening supply/demand dynamic in the overall EV market as headwinds, such as reduce EV credits, amongst other things.

Margins Margins Margins

All eyes will certainly be on margins, as Tesla's best in class on this category has taken a hit in recent quarters. If this trend continues it may leave a sour taste in investor's mouths.

Earnings Expectations

Analysts expect Tesla to report fourth-quarter revenue of $25.547 billion, according to estimates from Benzinga Pro.

Estimates call for the company to report earnings of 74 cents per share for the fourth quarter.

Earnings will be announced after the closing bell on Wednesday January 24th 2024.