Big Tech Talisman Tesla's Big Day
Tesla, Inc. $Tesla Motors(TSLA)$ is set to report Q1 2022 earnings after market close on April 20. Would Tesla being the 'T' in 'FANGMAN+T' be the talisman for big tech, who are queuing up to report in the blockbuster earnings week of 25 April onwards?
After Netflix $Netflix(NFLX)$ ‘crashed and burnt’ post Q1 earnings, there might be nervousness in how the other big tech, Facebook (Meta), Amazon, Alphabet (GOOG), Microsoft, Apple and Nvidia might perform and their forward guidance.
Positive TSLA
Despite supply chain constraints due to pandemic and geopolitical issues, TSLA reported stellar numbers for Q1, delivering 310,048 EVs globally, a 68% increase from corresponding Q1 last year. Outlook while clouded by Shanghai factory temporary halt, longer term worldwide production and delivery numbers are expected to rise sharply this year, with Gigafactory Berlin and Austin coming online. Come 2023, new products such as Cyber Truck, Roadster and the long-delayed Tesla Semi would further boost TSLA’s position as the top EV maker. Together with recent four consecutive quarters of EPS beat, and potentially positive outlook, Tesla looks unstoppable.
Negative TSLA
On the flip-side however, recent Musk shenanigans with buying out Twitter might cause some worry, and extreme left-field theory has it that it is a ‘manufactured’ distraction, to divert from a potentially underwhelming quarterly report and other headwinds.
‘Cowboy’ Elon Musk ‘cyber rodeo’ opening of Austin Gigafactory. Photo credits: Suzanne Cordiero/AFP via Getty Images
Chart Reading
I can’t read tea leaves (predict the future) and all these 'noises' might be overwhelming to process. Maybe we should focus on the price action and see what the market generated information tells us about TSLA stock price. From Daily chart, TSLA price has been on a dominant downtrend channel since Nov 2021. If earnings and outlook are positive, one could go Long, with upside target of 10.33% to the top of the channel around $1,145. If TSLA did a ‘NFLX-like’ price action, the bottom of the channel would likely give way, and a drop of at least 7.3% to 200 MA, around $890 could be on the cards, presenting Short opportunities.
Daily Chart of TSLA
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Interesting article and worth a read