- Tesla Earnings fall short of Wall Street expectations in the fourth quarter
- Tesla (TSLA) missed on earnings, revenue, and operating margins
- The company announced a new mass-market EV that could be in production by 2025
Four times each year, the Tesla (NASDAQ: TSLA) Earnings Day is one of the most polarizing for the markets. Scan social media and you’ll find your fair share of both Tesla bulls and bears. So far in 2024, Tesla bears have been in charge. The stock is down by more than 16.5% and is on the verge of recording its sixth consecutive red weekly candle.
Tesla’s weekly chart shows a clear long-term line of resistance that the stock has not been able to overcome. In terms of the options market, the flow is mixed. Conventional wisdom would say that the stock is way oversold and that any positive report will provide a relief bounce. Options flow has been cautiously optimistic for the long-term with put options being sold to open in August and November of this year. This indicates that there very well could be more short-term volatility ahead.
Tesla Earnings Report
Another quarter and another miss for Tesla. Operating margins were on everyone’s watchlist coming into these earnings and they showed continued decline from last year. Margins did come in higher on a sequential quarterly basis but are down a staggering 8% on a year-over-year basis. For those who are wondering, this is exactly what lowering the sticker price of vehicles does to a company’s efficiency.
Revenue also fell short of expectations, coming in at $25.17 billion vs. Wall Street expectations of $25.6 billion. Earnings came in at $0.71 per share vs. estimates of $0.74.
Shares of TSLA are down by about 3.38% following the release of its earnings. The conference call is scheduled for 5:30 EST.
Tesla Earnings and TSLA Stock Analysis
Things aren’t getting any easier for TSLA shareholders. The company reported that it expects EV demand to fall in 2024, citing that Tesla is currently between two major growth waves. It also anticipates potentially lower production and deliveries as it prepares for its next-generation vehicle at its Texas GigaFactory. This is also despite sales of the Cybertruck starting late last year.
It’s hard to imagine any bullishness coming from this report. Even the news of a potential mass-market vehicle arriving in 2025 wasn’t enough to sway the stock.
It looks like even big money is hesitant to buy in at these levels. The long-term sold puts are a cautious way to be optimistic about the future. It also sets a nice floor price at which they do not mind picking up shares. The fact is, we likely see Tesla being flattened by that massive resistance trendline above until something changes.
For the bulls, even despite all of this weight on the stock, it has held the $200 price level in extended trading. In quarters past, this type of report would have flattened the stock but it appears that much of it was already priced in. We could even see a short-term bounce if traders feel the news was not as bad as expected.
Tesla’s stocks remain decidedly below all of its key moving averages indicating a stark bearish trend. For now, the Tesla bears can take another victory lap. For long-term investors, this will likely be another quarter or two that you can safely accumulate the stock at lower prices. When that next growth cycle hits, you’ll wish you added at these depressed prices.