Bullish option flow was detected in TSLA stock on January 24, 2022, ahead of financials release on January 26, 2022.
Bullish Option Flow
Make sure to review this lesson on option flow so that you understand the image above.
Tesla 2022-23 estimates raised at Jefferies ahead of Q4 report
On January 20, 2022, Jefferies analyst Philippe Houchois has raised his 2022-23 estimates for Tesla by 12% and 6%, respectively, on higher growth and marginally higher volume-driven gross margin ahead of the company’s Q4 report due on January 26. He views the Q4 results as “critical” to validate, or not, the Q3 profit dynamics that could see Tesla carve out meaningful share from legacy OEMs and claim a “disproportionate share of the industry profit pool,” Houchois tells investors. Tesla CEO Elon Musk has promised an updated product plan along with the Q4 report, which should clarify widely rumored delays to Cybertruck, but what he views as “more critical” will be the roadmap to a smaller Tesla which, if confirmed, will underpin the drive to affordability. Houchois maintains a Buy rating and $1,400 price target on Tesla shares.
Tesla investors want Musk to repay $13B for SolarCity deal, Reuters reports
On January 19, 2022, Tesla shareholders have urged a judge at an ongoing trial to find Elon Musk coerced the company’s board into a deal for SolarCity in 2016 and have asked for Musk to be ordered to pay $13B, Tom Hals of Reuters reports. “This case has always been about whether the acquisition of SolarCity was a rescue from financial distress, a bailout, orchestrated by Elon Musk,” Randy Baron, an attorney for shareholders, told the Zoom hearing, according to Reuters. The lawsuit alleges Musk strong-armed Tesla’s board to approving the deal for SolarCity, a company Musk was the top shareholder in. Musk has countered this claim by arguing it was part of a decade-old plan to vertically integrate Tesla to transform energy generation and consumption. Source: https://www.reuters.com/business/telsa-investors-urge-judge-order-musk-repay-13-bln-solarcity-deal-2022-01-18/
Tesla will continue exceeding profitability expectations, says Piper Sandler
On January 19, 2022, Piper Sandler analyst Alexander Potter raised estimates for Tesla to reflect the “better-than-expected” Q4 deliveries as well as a higher estimate for deliveries in 2022. He now expects 1.53M units delivered in 2022, up from 1.38M previously. Potter is also nudging his 2022 margin expectations higher. With strong volume and a rising contribution from software, Tesla will continue exceeding profitability expectations, Potter tells investors in a research note. He keeps an Overweight rating on the shares with a $1,300 price target.
Tesla price target raised to $1,025 from $830 at Credit Suisse
On January 18, 2022, Credit Suisse analyst Dan Levy raised the firm’s price target on Tesla to $1,025 from $830 and keeps a Neutral rating on the shares. The analyst believes favorable fundamentals can continue to support Tesla stock. Yet non-fundamental factors will also need to remain supportive, he adds. Levy points out that his above-consensus Q4 EPS est. assumes quarter-over-quarter margin expansion.
Tesla pushes Cybertruck production start to early 2023, Reuters reports
Tesla intends to start initial production of its Cybertruck by the end of the first quarter of 2023, delaying its plan to start production later in 2020, Reuters’ Hyunjoo Jin reports, citing a person familiar with the matter. Source: https://www.reuters.com/technology/exclusive-tesla-delays-initial-production-cybertruck-early-2023-source-2022-01-13/
📺💥 Cathie Wood Destroys Tesla Analysts + Talks Stock Market Crash[embedyt] https://www.youtube.com/watch?v=aRRKgizPcTc[/embedyt]
📉 TSLA Stock Technical Analysis
TSLA stock bounced off its 200 day moving average on January 24, 2022. The long term trend is positive and the short term trend is negative. It is probably better to wait until this picture becomes clearer. TSLA is one of the better performing stocks in the Automobiles industry, it outperforms 82% of 28 stocks in the same industry. TSLA is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range. Prices have been falling strongly lately, it is better to avoid new long positions here.
There is support at 899.93 from a horizontal line in the daily time frame. There is also support at 865.11 from a trend line in the weekly time frame. Finally, there is support at 813.62 from a trend line in the weekly time frame.
There is resistance at 932.56 from a horizontal line in the weekly time frame. There is a resistance zone ranging from 1026.03 to 1030.32. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame. Finally, there is a resistance zone ranging from 1050.44 to 1067.01. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
The technical rating of TSLA is bad and it also does not present a quality setup at the moment. TSLA stock has a Setup Rating of 3 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when TSLA stock consolidates and has a Setup Rating of 8 or higher.