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- 1 After the earnings announcement, TSLA Stock fell by 9.47% but has rallied 121.91% YTD.
- 2 This drop in Tesla’s share price made Elon Musk lose considerable wealth.
Tesla Inc. (NASDAQ: TSLA) posted its Q2 earnings on July 19, showing record sales and rising profits. Nevertheless, TSLA Stock fell by 9.74%. Initially, the share price remained flat after the announcement but it soon began dropping. Experts argue that Elon Musk and other executives failed to deliver information on the hyped Cybertruck and the proposed robotaki-ready vehicle. Additionally, there was a hint of slow production in Q3 2023.
Tesla Inc. (TSLA Stock) – Financial Analysis
The revenue from Tesla’s core automotive business was $51.03 Billion in 2021 and around $77.55 Billion in 2022. This sector jumped by 46% year-over-year (YoY) and showed a 6.5% sequential growth. Even after reporting its all-time-high quarterly revenue, the operating margin fell by 9.6%.
Tesla’s research and development costs swelled to about $943 Millon, in Q1 2023. Additionally, the company hinted at a slow production rate in Q3 2023 due to factory shutdowns in order to improve its manufacturing process.
Looking at Tesla’s competitors, Lucid Group Inc. (NASDAQ: LCID) fell by 4.55% to $6.92, while Rivian Automotive Inc. (NASDAQ: RIVN) gained 3.95% to $25.81. Moreover, Tesla still sells the most electric vehicles in the U.S. and has a market share of 53.97%. Other EV manufacturers in America are adopting Tesla’s North American Charging Standards (NACS), and this generalization of NACS might boost EV sales in the country.
Elon Musk’s wealth also suffered from the drop in NASDAQ: TSLA Share price on July 20, 2023. The fortune of the wealthiest man in the world fell by $20.3 Billion after the company hinted at cutting the costs of their electric vehicles. Musk’s net worth fell to $234.4 Billion, and this is considered the seventh-largest drop ever among the Bloomberg Billionaires Index.
Tesla Inc. (NASDAQ: TSLA) – Technical Analysis
At press time, TSLA Stock is trading at $262.90 after falling by 9.74%. Its previous close and open were at $291.26 and $279.56, respectively. The 52-week range is from $101.81 to $314.67, indicating that bullish momentum will be required to break the upper limit. With an average volume of $153.67 Million shares, the market cap is $833.262 Billion.
The trailing twelve-month (ttm) price-to-earnings (P/E) ratio is 77.78, indicating a high-valued stock. At the same time, the (YoY) earnings per share (EPS) is $3.38, showing strength. Analysts placed a 2.17 rating for HOLD and estimated a price target at $225.88, with a 14.1% downside.
Tesla reported its latest Q2 earnings report on July 19, 2023, where the reported revenue of $24.927 Billion exceeded the estimated value of $24.221 Billion by 2.91%. At the same time, the reported earnings of $0.91 per share surpassed the estimated value of $0.793 by 14.78%. Furthermore, compared to the previous quarter, the value jumped by 20.26%.
Net income was reported to be $2.70 Billion, with a hike of 20% compared to the previous year. Operating expenses gained 23.01% to $2.13 Billion, while the operating income fell by 3% to $2.40 Billion. TSLA’s share price fell by 4.26% in a week and rallied 104.31% in six months and 121.91% YTD.
Tesla Inc. (TSLA Stock) – Candle Exploration
The price action has been in a double-bottom pattern since November 2022 and finally broke the neckline in June 2023. Although there was a slight correction, it formed immediate support at $237.558, which could act as a trampoline for the price to bounce back.
Although the price action is slowing, the upward trajectory of EMA hints at growth. However, the dropping value of RSI at 50.04 hints at a fall. Even if the price falls below $237.58, it shall bounce off the EMA. A bullish momentum can be expected once the price breaks out of the supply zone.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
