Tesla Earnings Due

Investors are bracing for the latest set of Tesla earnings today with stockholders looking to see whether this will be the third consecutive quarter of weaker-than-forecast earnings or if the company was able to rebound over Q1.  Ahead of the release, Tesla shares have come under pressure amidst news that the carmaker has slashed prices on three leading electric vehicles as well as its self-driving software. Indeed, Musk was seen cancelling a visit to India to meet with Modi this weekend citing the need to tend to “very heavy obligations” at the company.

Missed Deliveries Forecasts

Earlier this month, Tesla revealed that deliveries had undershot market forecasts by around 13%, indicating the likelihood of a weak set of Q1 results today. EV demand around the globe has fallen over the last year while competition from Chinese rivals has taken a heavy toll on Tesla’s market share.

Cybertrucks Recalled

The company was hit by further bad news this month when it last week recalled all 3838 Cybertrucks sent out so far due to issues with the accelerator pedal. The news comes at a very difficult time for Tesla, when the company has already laid off around 10% of its global workforce in response to weaker profits.

Expectations for Today

On the numbers front today, Wall Street is looking for EPS of $0.49 on revenues of $22.22 billion. If seen this will mark a sharp drop from the last quarter and the same quarter a year prior. The risk today is that these numbers are undershot, which would be extremely bearish for Tesla shares.

Technical Views

Tesla

The sell off in Tesla shares has seen price breaking down through several key levels. The latest decline has seen price breaking below 170.22. While below here and with momentum studies bearish the focus is on a further push lower with 108.24 the next level to note. 

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