What you need to know about Tesla Earning this week!
My First rule: While Earnings outcome could be predictable, the market reaction to the earnings is very hard to predict..!
You can find all the combinations: From very disappointing earnings that resulted in a big jump in stocks price to very promising earnings leading to a big downward gap!
A brief Fundamental Analysis:
Now let's talk about Tesla's earnings on April 20, 2022: Wednesday after the market closure,4:30 p.m. Central Time / 5:30 p.m. Eastern Time.
Tesla Q1 2022 Financial Results:
Production: 305,407, +69.3% increased in comparison to Q1 2021, -0.15% decreased in comparison to previous quarter,Q4 2021.
Deliveries: 310,048, +67.7% increased in comparison to Q1 2021, +0.46% increased in comparison to previous quarter,Q4 2021.
*Tesla increased prices several times in 2021 and 2022:
Revenue Forecast: Must be Increased significantly increased in comparison to Q1 2021, Must be close to the previous quarter, Q4 2021.
**Considering the inflation effect, higher sales don't mean higher profit or higher market valuation necessarily:
Education:
The price-to-sales ratio (Price/Sales or P/S) is calculated by taking a company's market capitalization (the number of outstanding shares multiplied by the share price) and dividing it by the company's total sales or revenue over the past 12 months. (Investopedia)
Now let's look at Price patterns:
The previous Earning:
1- A -29.5% decline in 13 trading days from previous high, then +16% increase in 3 days followed by -19.8% drop in 3 days..!
So, the previous impressive earnings did not lead to a bullish rally ..!
Current Price Pattern: (My Observation)
1- Bearish Sushi Roll Pattern:
2- Bearish Harami:
3- Rejection from resistance and gap got filled:
4- Option walls,and Max Pain: 1050-950, Max Pain:970 (will need update daily)
5-Put/Call OI: 1.01 (Consider Bearishwhen OI>0.7)
Conclusion:
A: One thing is sure, implied volatility will be increased, and we should manage our position day by day, and I tend to have no open position in Tesla before earnings!
B: Options trading: both Put and calls could be more rewarding this week if you are on the right side of the equation..!
Action Plan: Will be published..!
For the long-term Consider these:
Toyota Motors price-to-sales ratio:
or
Volkswagen price-to-sales ratio:
and
Mercedes-Benz's latest electric concept car drove 1,008 kilometers — 626 miles — on a single charge. During 626 miles of driving, the concept car consumed one kilowatt-hour (kWh) for every 7.1 miles traveled. EVs today generally get 2-4 miles per kWh.
The road trip included 87-mph stints on the Autobahn, mountain passes, rain, and temperatures ranging from around 37 to 64 degrees Fahrenheit. At the end of its journey, the Vision EQXX still had 87 miles of range left, amounting to a theoretical range exceeding 700 miles.
(Businessinsider)
Best,
Dr. Moshkelgosha M.D
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
You can find all the combinations: From very disappointing earnings that resulted in a big jump in stocks price to very promising earnings leading to a big downward gap!
A brief Fundamental Analysis:
Now let's talk about Tesla's earnings on April 20, 2022: Wednesday after the market closure,4:30 p.m. Central Time / 5:30 p.m. Eastern Time.
Tesla Q1 2022 Financial Results:
Production: 305,407, +69.3% increased in comparison to Q1 2021, -0.15% decreased in comparison to previous quarter,Q4 2021.
Deliveries: 310,048, +67.7% increased in comparison to Q1 2021, +0.46% increased in comparison to previous quarter,Q4 2021.
*Tesla increased prices several times in 2021 and 2022:
Revenue Forecast: Must be Increased significantly increased in comparison to Q1 2021, Must be close to the previous quarter, Q4 2021.
**Considering the inflation effect, higher sales don't mean higher profit or higher market valuation necessarily:
Education:
The price-to-sales ratio (Price/Sales or P/S) is calculated by taking a company's market capitalization (the number of outstanding shares multiplied by the share price) and dividing it by the company's total sales or revenue over the past 12 months. (Investopedia)
Now let's look at Price patterns:
The previous Earning:
1- A -29.5% decline in 13 trading days from previous high, then +16% increase in 3 days followed by -19.8% drop in 3 days..!
So, the previous impressive earnings did not lead to a bullish rally ..!
Current Price Pattern: (My Observation)
1- Bearish Sushi Roll Pattern:
2- Bearish Harami:
3- Rejection from resistance and gap got filled:
4- Option walls,and Max Pain: 1050-950, Max Pain:970 (will need update daily)
5-Put/Call OI: 1.01 (Consider Bearishwhen OI>0.7)
Conclusion:
A: One thing is sure, implied volatility will be increased, and we should manage our position day by day, and I tend to have no open position in Tesla before earnings!
B: Options trading: both Put and calls could be more rewarding this week if you are on the right side of the equation..!
Action Plan: Will be published..!
For the long-term Consider these:
Toyota Motors price-to-sales ratio:
or
Volkswagen price-to-sales ratio:
and
Mercedes-Benz's latest electric concept car drove 1,008 kilometers — 626 miles — on a single charge. During 626 miles of driving, the concept car consumed one kilowatt-hour (kWh) for every 7.1 miles traveled. EVs today generally get 2-4 miles per kWh.
The road trip included 87-mph stints on the Autobahn, mountain passes, rain, and temperatures ranging from around 37 to 64 degrees Fahrenheit. At the end of its journey, the Vision EQXX still had 87 miles of range left, amounting to a theoretical range exceeding 700 miles.
(Businessinsider)
Best,
Dr. Moshkelgosha M.D
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
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Let's see if this post remains on the front page of TradingView for more than 7 hours when people get back to work in London ;-)