Trading Strategies For Tesla Stock Before And After Q4 Earnings
Portfolio Pulse from Melanie Schaffer
Tesla, Inc (NASDAQ:TSLA) is entering its Q4 earnings report with a flat trade, following a Q3 earnings miss that led to a significant stock price drop. Analysts predict Q4 earnings per share of 74 cents on revenues of $25.59 billion, with vehicle deliveries exceeding estimates. The article discusses trading strategies for Tesla stock, mentioning the Grayscale Bitcoin Trust ETF (NYSE:GBTC) for Bitcoin exposure, and the AXS Short Innovation Daily ETF (NASDAQ:SARK) and AXS 2X Innovation ETF (NASDAQ:TARK) for bearish and bullish positions, respectively. Technical analysis suggests a bearish outlook for Tesla's stock with a potential bear flag pattern indicating a further decline.
January 24, 2024 | 7:36 pm
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POSITIVE IMPACT
SARK, which inversely tracks ARKK, is suggested for traders looking to hedge against a potential downside in Tesla's stock, as ARKK holds a significant weighting in Tesla.
SARK may see a short-term positive impact if Tesla's earnings disappoint, as it is designed to inversely track ARKK, which has a substantial Tesla holding.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70
NEUTRAL IMPACT
GBTC offers exposure to Bitcoin without holding the cryptocurrency directly and is mentioned as an alternative for traders interested in Tesla's potential crypto holdings.
While GBTC provides a way to invest in Bitcoin's performance, its short-term impact is more indirectly related to Tesla's earnings and potential crypto holdings, making the impact neutral until more information is available.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
TARK aims to offer double-leveraged returns based on ARKK's performance and is recommended for traders bullish on Tesla's stock.
TARK could experience a negative short-term impact if Tesla's earnings report is unfavorable, given its leverage on ARKK's performance, which is significantly affected by Tesla's stock movements.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70
NEGATIVE IMPACT
Tesla's Q4 earnings report is highly anticipated, with a flat trade preceding it and a bearish technical pattern suggesting potential downside. The stock's reaction to the earnings release will be crucial for short-term price movement.
Given the bearish technical analysis and the recent history of a stock price drop following an earnings miss, there is a likelihood of a negative short-term impact on TSLA's stock price if the earnings report does not meet or exceed expectations.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100