Tesla Motors (TSLA)
Click to Enlarge Earnings Report: Wednesday, May 7, after the bell
I admit that Tesla Motors (TSLA) has been one of my favorite darling stocks over the past several years, and I’m not alone. The public has embraced CEO Elon Musk’s most-excellent Model S sedan, and more importantly, the investing public has embraced TSLA stock.
Over the past five years, TSLA stock has driven roughly 1,000% higher, and in the past 52 weeks alone, shares have spiked nearly 257%. Tesla also has impressed year-to-date, up some 41%; however, since March, there has been a decided drift lower that has pushed TSLA stock below its 50-day moving average.
We’ll find out Wednesday after the closing bell whether Tesla can deliver strong top- and bottom-line results. A strong top line would be approximately $700 million, while I want to see adjusted EPS of at least 6 cents on the bottom line.
My colleague Jeff Reeves says he’s expecting Tesla to post “its first ho-hum performance after earnings this week.” Reeves correctly points out that the shorts have mostly been shaken out, and that there hasn’t been a lot of volatility of late.
While I agree with this analysis, I also think that any significant beat and/or miss on either Tesla’s top or bottom line, and we’ll see traders go into overreaction mode. The former could send shares skyrocketing well past all-time highs … but the latter could send TSLA stock back down to support at the 200-day average around $175.
As of this writing, Jim Woods was long TSLA.