- Tesla stock price has rebounded amid rebound in American shares.
- The company will publish its financial results on Wednesday this week.
- The stock has formed a falling wedge pattern, pointing to more gains to $500.
Tesla stock price has made a strong recovery this month, as BanklessTimes predicted in several reports. TSLA jumped to $410, and the forming falling wedge pattern points to more price rally, potentially to $500 in the next few days.
Tesla Earnings to Drive its Stock Price
TSLA will be one of the top stocks on Wall Street this week as it publishes its financial results on Wednesday. These results will let Elon Musk and the team share details on its growth trajectory as it faces major headwinds.
A major headwind is that its deliveries were much weaker than expected, with the gap between deliveries and production being over 50,000 vehicles, the biggest gap in years.
Tesla delivered 358k vehicles in the last quarter, after delivering 408k in the previous quarter. These deliveries were well below analysts’ expectations. In contrast, Nio, another top Chinese EV company, delivered 83k vehicles in the last quarter, a 98% annual increase.
The most recent results showed that Tesla’s revenues dropped by 3% to $24.9 billion in the fourth quarter, while its gross margin narrowed to 5.7%.
Tesla is working to boost its sales as signs show that demand for electric vehicles is rising, amid rising gasoline prices. In a statement on Sunday, the head of the energy department said that gasoline prices are unlikely to drop to $3 before the end of the year. It is working on the cybercab and a cheaper car that will be launched in the next few years.
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Tesla also aims to start volume production of the Semi truck and the Megapack 3 later this year. However, history shows that Elon Musk’s statements should be taken with a grain of salt. For example, the luxurious Tesla Roadster that was unveiled in 2019 has never been launched.
Tesla also aims to launch the Optimus robot’s production line later this year. Elon Musk aims for this robot, which will be autonomous and handle repetitive, dangerous tasks. Still, it is too early to predict whether this robot will be successful in adoption, given that it is expected to cost between $20k and $30k.
Meanwhile, Wall Street analysts expect the upcoming results to show that its revenue rose by 15% YoY in the first quarter to $22.3 billion, while its annual figure will jump to $102.3 billion.
Tesla Stock Price Technical Analysis
The daily timeframe chart shows that the TSLA stock has rebounded in the past few weeks, as we predicted here and here. This forecast was based on the formation of a falling wedge pattern, a pattern composed of two descending, converging trendlines.
The stock has moved above the 38.2% Fibonacci retracement level at $391. It has jumped above the 50-day and 100-day exponential moving averages (EMAs). Also, the Supertrend indicator has turned green for the first time since December last year.
Therefore, the most likely Tesla stock price forecast is bullish, with the next key target being the psychological level of $500. On the other hand, a drop below the $350 support level will invalidate the bullish outlook.
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