Tesla comes out of a crazy week.
The automaker is under investigation in the United States following a fatal crash in Texas and criticized in China after a woman protests at a major auto show.
Morgan Stanley sticks to the stock. Analyst Adam Jonas raised his price target to $ 900, which implies a 23% hike. The stock closed at $ 729.40 on Friday.
It all preceded Monday afternoon’s results. Analysts expect earnings of 75 cents a share in its quarter ended in March, down from 25 cents a year earlier. according to FactSet. Sales are expected to have increased 75% to $ 10.48 billion.
Danielle Shay, director of options at Simpler Trading, says recent bad news about the company has kept its course on action.
“That actually puts it in a great position in the earnings report. If you look at how Tesla performed on earnings – yes, last quarter they fell after earnings, but that was after earnings. doubling the share price throughout the quarter – before that we saw Tesla trading higher on earnings, ”Shay told UKTN’s“ Trading Nation ”Friday.
History should repeat itself this quarter, she predicts.
“This is a great place to sell put credit spreads, either on the currency or the currency, to really take advantage of this high implied volatility due to all the news about Tesla, and I’m looking for the stock to trade more. up. after the report, ”Shay said.
Even if it doesn’t turn out that way, Shay is still bullish on the title. She says any pullback presents an opportunity to buy on the weakness.
Craig Johnson, chief market technician at Piper Sandler, is also a Tesla fan heading for profit.
“The title is still down 20% from its peaks… [but] we broke the uptrend support line and in my view this is a stock that should be bought before making a profit. If you look back at the impressions of the quarterly results, you can see that 70% of the time this action has beaten the bottom line. “
Tesla’s parabolic rise in 2020 has gone to average growth this year. The stock is up 3% in 2021, underperforming the 11% increase in the S&P 500