$Tesla Motors(TSLA)$ Bullish.
Winnings trades for Tesla Q3 earnings report.
Hi all! Do l think Tesla will hit $300 before Q3 earnings report? Nope. However, l am just as confident it will hit it by end of the year. I think Tesla missing their delivery numbers has already been priced into the stock price. I will not be surprised to see them missing the revenue estimates as well because of the price cuts across their range of car models and lower delivery numbers in Q3.
Nevertheless, l am still very bullish about the stock performance moving forward. I believe Elon Musk has the right strategy for the future just like being right about introducing price cuts at the end of last year in China model 3 which increased their competitiveness. Personally, l have picked Tesla shares at real value during that period at lower ends of $100+. I feel nothing has changed in fundamentals and strategy within the year so l am still holding on to the shares.
No matter how the stock fares during this 3Q earnings report, it will only be exceed by the stellar 4Q earnings report of this year. I expect Tesla to break the $300 price levels when the 4Q earnings report comes out and test its all time highs again. We are really just trading on future projections and estimates here. Tesla already stated they will be able to stick to their annual delivery numbers so l am convinced it will be strong earnings for the 4Q quarter. Moreover, Cybertruck will be launching in 4Q as well with already strong orders coming in. On top of the main revenue stream, we will have other exciting revenue sources like battery and charging network projects as well as receivables. All this means Tesla is still going to remain as the undisputed market leader of EV industry.
For trading, l recommend a simple buy at the current price level of $250-$255 for Tesla and hold till 4Q earnings report. We may not hit $300 before Q3 earnings report but l am quite confident that we will do that before Q4 earnings report release.
For options trader like me, l recommend to sell puts at $232.5 for 20/10/23 contracts. This is a best play for me with a put target just below the near term bottom support of $234. I really don't mind picking up the shares at the target level and it gives a much better premium as compared to the $220 support level that most traders are looking at. Alternatively, you can buy call options for 20/10/23 contracts at $250 or $252.5 for a simple ride to the upside of $275 if the market reacts favorably more to the future estimates and projections than current strategic misses to launch Cypertruck in US and facelifted model 3s in China.
Best of luck to all fellow traders. Let's enjoy this leg up before the final correction wave of this year! Cheers!
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