Daily Market Analysis and Forex News

Week Ahead: Tesla kicks off Big Tech earnings

Próxima semana: Tesla lanza las ganancias trimestrales de las Big Tech

Tesla ↑ almost 60% from 2024 low

Earnings released on 23rd October after US market close

Impact of price cuts & Q4 outlook in focus

Shares could move 6.2% ↑ or ↓ post earnings

Technical levels – 50 & 100-day SMA, $213.00

The week ahead is stacked with top-tier data releases, speeches by policymakers, and more quarterly earnings from the largest companies in the world:

Monday, 21st October

CN50: China loan prime rates
TWN: Taiwan export orders
USDInd: US Conference Board leading index, Fed speeches

Tuesday, 22nd October

NZD: New Zealand trade
EU50: ECB President Christine Lagarde interview
UK100: BOE Governor Andrew Bailey speech

Wednesday, 23rd October

CAD: BoC rate decision
EU50: Eurozone consumer confidence, ECB President Lagarde speech
SG20: Singapore CPI
ZAR: South Africa CPI
TWN: Taiwan industrial production
US30: US existing home sales, Fed Beige book, Boeing earnings
NAS100: Tesla earnings

Thursday, 24th October

EU50: Eurozone/Germany PMIs
TWN: Taiwan jobless rate
UK100: UK S&P Global Manufacturing and Services PMI, Barclays earnings
RUS2000: US jobless claims, S&P Global PMIs

Friday, 25th October

CAD: Canada retail sales
EU50: Germany IFO business climate
JP225: Japan Tokyo CPI
SG20: Singapore industrial production, home prices
US400: US durable goods, University of Michigan consumer sentiment

Earnings season is in full swing with solid results from the biggest US banks supporting Wall Street. US equity markets could be injected with fresh volatility when big tech companies report their earnings.

One of the world’s largest EV manufacturers with a market cap of over $700 billion will be in focus.

Tesla shares have had a rough year, rebounding from a mid-April rout but still down over 10% in 2024. The company’s stock tumbled in the week ending 11th October after Elon Musk’s Robotaxi unveiling disappointed investors who had hoped for more concrete details.

Still, Tesla shares are up almost 60% from their 2024 low and could push higher or lower depending on how markets react to the latest earnings.

When will earnings be published?

Tesla reports its third-quarter earnings on Wednesday 23rd October after US markets close.

Market expectations

The EV manufacturing is forecast to post earnings of $0.60 per share compared to $0.66 a year ago.

Quarterly revenues are seen rising to $25.4 billion from $23.4 billion in the prior year – equating to an 8.5% increase.

What to watch out for

Tesla has already published its delivery figures for Q3, revealing that 462,890 vehicles were delivered – a 6.4% increase from last year. While this was below market estimates, it still marked the company’s first quarter of growth in 2024.

Back in April, Tesla announced a fresh round of price cuts in several major markets. It will be interesting to see how this impacted profitability in Q3.

A boost from any recovery in China after reports earlier this month revealed sales of Tesla's China-made electric vehicles rose 19.2% in September year-on-year.

Earlier this month, there were reports of top executive departures from the company. Investors may comb through the earnings to see how what this could mean for operations.

Any updates on Tesla’s full self-driving software and outlook for the final quarter of 2024 could help investors gauge its business outlook.

How will Tesla react to earnings?

Markets are forecasting a 6.2% move, either Up or Down, for Tesla stocks post earnings.

Technical picture

Tesla shares are under pressure on the daily timeframe as there have been consistently lower lows and lower highs. Prices are trading below the 50-day SMA but support may be offered by the 100 and 200-day SMA. In addition, the Relative Strength Index (RSI) is venturing toward 30 – signalling that prices may be oversold.