January 2022 is in its final week and the negative trends haven’t slowed down. As many companies prepare to report earnings, investors have plenty of questions. As a result, Tesla (NASDAQ:TSLA) is in the spotlight. After starting the year on a high note, the electric vehicle innovator has failed to keep up the early momentum. While the month has seen plenty of company and industry catalysts, Tesla stock remains in the red.
That doesn’t mean, though, that investors should be worried. Even if the crash does come, this stock will weather the storm.
What’s Happening With Tesla Stock
As Tesla prepares to report earnings for the final quarter of 2021, the news wire remain fairly quiet. As noted, shares have been gradually declining all month, hitting 12% today. As InvestorPlace contributor Joel Baglole notes, Wall Street expects Tesla to report earnings per share $2.26 and revenues of $16.4 billion.
It should be noted, though, that EV stocks are falling across the board as negative momentum overtakes financial markets.
With this type of performance, it’s easy to regard Tesla stock with some skepticism as it prepares for earnings. Despite the declines that we’ve seen of late, investors should rest assured that Tesla stock will recover and find its footing when markets recover. Let’s take a closer look at what the future look like for this company.
The Road Ahead
Tesla’s earnings call is scheduled for Jan. 26, 2022. While it is true that the call could lead to either calm or chaos on Wall Street, analysts remain generally bullish. Both Dan Ives of Wedbush Securities and Alexander Potter of Piper Sandler still rate Tesla stock as a buy and maintain high price targets. Last week saw Credit Suisse’s Dan Levy raise his price target as well and predict that the stock will beat Wall Street’s expectations.
And while rising interest rates do frighten some investors, Tesla stock is well positioned to survive. InvestorPlace analyst Luke Lango has made the case for why growth stocks are likely to rise in 2022 despite popular misconceptions. The logic he lays out certainly applies to a stock like TSLA.
Additionally, investors shouldn’t forget that Tesla has some important catalysts approaching. The company expects to roll out a full self-driving (FSD) beta in Canada within the coming weeks. We also have reason to believe that the company is well-prepared to keep pace with demand in 2022. According to Bloomberg, Tesla’s Freemont, California plant produced more EVs in 2021 than 70 other competitor factories. That’s not good news for companies such as Toyota (NYSE:TM) or Ford (NYSE:F), who are working around the clock to compete with Tesla.
The Bottom Line
We don’t know for sure what Tesla will report on its Wednesday call, but we have reason to believe it will be positive. That bodes well for investors who remain bullish on Tesla stock.
If the report is positive, Tesla stock may end the month in the same way that it began it — in the green. Everyone should be watching closely.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
