Trading Strategies For Tesla Stock Post Q3 Earnings Miss
Portfolio Pulse from Melanie Schaffer
Tesla, Inc (TSLA) experienced a significant drop of about 13% after reporting Q3 earnings that missed expectations, with an EPS of 71 cents versus the consensus estimate of 74 cents, and revenues of $25.17 billion against the expected $25.62 billion. The AXS Short Innovation Daily ETF (SARK), which inversely tracks the ARK Innovation ETF (ARKK) with Tesla as a major holding, saw a 0.9% return. The Tesla stock chart indicates a potential further decline towards the $171 level, with current resistance and support levels identified.
January 25, 2024 | 6:19 pm
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POSITIVE IMPACT
SARK, which inversely tracks ARKK's performance, saw a 0.9% return following Tesla's earnings miss, as Tesla is a major holding in ARKK.
SARK's positive performance is directly related to Tesla's negative earnings report, given its inverse relationship with ARKK, which has significant exposure to Tesla.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
ARK Innovation ETF (ARKK), with a 7.77% weighting in Tesla, may face downward pressure due to Tesla's earnings miss and stock price decline.
ARKK's performance is likely to be negatively impacted in the short term due to its significant holding in Tesla, which just reported disappointing earnings.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Tesla's Q3 earnings miss and subsequent 13% stock price drop indicate a bearish short-term outlook. Chart analysis suggests a potential further decline towards $171.
The earnings miss is a significant negative catalyst for Tesla's stock price in the short term. The technical analysis provided in the article, including the bear flag pattern and high volume on the breakdown, supports the likelihood of further declines.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100