Could we be waiting for the most important earnings report of the year? Certainly, it will be a major event when electric vehicle (EV) manufacturer Tesla (NASDAQ:TSLA) releases its third-quarter 2023 earnings results. If my contrarian instincts are spot-on, you’ll definitely want to mark your calendar and own TSLA stock before Tesla’s quarterly data is announced.
Tesla CEO Elon Musk is unpredictable and so are the company’s financial results. The only thing I know for certain is that investors will be watching closely for clues regarding Tesla’s fiscal health and growth prospects.
Ultimately, there will be bigger-picture implications for the EV industry as a whole. However, what matters during the next few days is whether you have a dog in the race. If you don’t have at least a few TSLA stock shares, you might miss out on some fast gains.
TSLA Stock Traders: The Big Day Is Coming!
Here’s the day you need to get ready for. Tesla should release its third-quarter 2023 financial results after the market closes on Wednesday, Oct. 18.
Now, you might assume investors and analysts are enthused about Tesla’s prospects. After all, the company is the most famous American EV manufacturer of them all. Besides, U.S. EV sales increased nearly 50% year-over-year in Q3 2023. Why would anybody be worried about Tesla, then?
People are concerned, though. You might actually see headlines saying things like, “Tesla Earnings Are Going To Be Bad.” Plus, you may catch wind of analysts cutting their price targets on TSLA stock before the company’s quarterly financial stats are released.
Among the bearish-leaning analysts is Evercore’s (NYSE:EVR) Chris McNally, who recently set a $165 price target on Tesla shares. That implies a significant downside from the current stock price.
Contrarians Thrive on Low Expectations
If you like to fade the crowd, this magnitude of negative sentiment should make you bullish, not pessimistic. True contrarians should view the low bar set for Tesla as an opportunity.
For 2023’s third quarter, analysts only expect Tesla to post earnings of 73 cents per share. That’s the lowest EPS forecast in a while, and it seems like Wall Street is ignoring Tesla’s excellent track record of beating quarterly earnings expectations.
Furthermore, bearish commentators are apparently worried about Tesla’s EV delivery results in China. That data is already out there, so surely it will feed into the pervasive pre-earnings-announcement fear.
Additionally, some folks worry because Tesla’s third-quarter share of the U.S. EV market was “only” 50%. Apparently, the market is so accustomed to Tesla dominating the EV industry that people aren’t satisfied anymore unless Tesla has an undisputed monopoly.
Grab Yourself Some TSLA Stock Before Oct. 18
All eyes will be on Tesla as the automaker reveals quarterly financial results that could be good, bad or downright ugly. Yet, it seems like some people already anticipate poor results.
That opens up a window of opportunity for dyed-in-the-wool contrarians. It’s not psychologically easy to do the opposite of bearish analysts and investors. However, I believe it’s the smart-money move to buy TSLA stock before Oct. 18, while the pre-earnings-event fear is reaching a fever pitch.
On the date of publication, David Moadel did not hold (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.
