Bloomberg reports options pricing hints at Tesla’s stock price going up or down 7.2%, which could end up being the largest post-earnings swing since January 2020, ahead of the company’s Q1 earnings, slated for Monday, April 26.
Given the volatile movement history of Tesla stock immediately following company earnings calls, which direction stock price will move come Monday is currently a coin toss.
Jeffrey Osborne, an analyst at Cowen, believes Tesla’s stock and market share plateaued when the company hit all-time high after all-time high last year and saw an increase in stock price of over 700%.
Osborne believes that legacy automakers penetrating the EV market, as well as the host of new names in the space, will give Tesla a tough time moving forward. The analyst said:
We acknowledge Tesla has shaken up the auto industry, but recent commitments and advancements from incumbent automakers such as Volkswagen and General Motors suggest to us that Tesla has achieved peak market share within the EV category,
Tesla has already reported record deliveries in Q1 ahead of its earnings call for the quarter, netting it a decent boost in price at the stock market and painting a pretty picture for the rest of the year.
However, with most veteran automakers now gearing up to make their presence known in the EV space, Tesla may start missing out on revenue from selling regulatory credits to them, which have helped pad the company’s profits.
Tesla saw record sales numbers in China during Q1 assisted by the launch of its Model Y compact crossover, so all eyes on the company to see what its earnings are for the quarter. We can again expect construction updates for its Gigafactories in Berlin, Austin and Shanghai as well.
