🚘Tesla stock gains 2% ahead of earnings

TESLA (TSLA.US) is scheduled to release its Q2 earnings report today after the close of the US session. As usual, a conference call and Q&A with Tesla’s management is scheduled after the results. The world's most popular electric carmaker finished its first full year of profitability in 2020. During the last three quarters, Tesla recorded sharp increases in earnings, revenue and vehicle deliveries and maintained its position as the most popular stock among both consumers and investors. 

Let's take a look at what investors are expecting from today's report.

As was the case in the past, investors will primarily focus on the vehicle deliveries figures as they account for the majority of the company's earnings results. The company's primary business is making electric cars and it needs to continue expanding production in order to grow revenue and profits, however this may be difficult in the future due to rising competition mainly from Volkswagen. Although the company already reported delivery figures earlier this month, these numbers are always slightly adjusted during earning results. Total deliveries for Q2 FY 2021 came in at 201,250, up 122.0% compared to the same quarter a year-ago. Any significant deviations from these figures, could lead to significant price movements. Also investors may want to hear more updates regarding two gigafactories in Berlin and Texas and their impact on the future production levels.

When it comes to earnings, Tesla is expected to report adjusted EPS of $0.99, while the Earnings Whisper number, or the Street’s unofficial view on earnings, stands at $0.91 per share.

Meanwhile revenue is expected to rise at its fastest pace since the second quarter of 2018 amid strong vehicle deliveries. The Wall Street analysts' expect revenue of  $11.4 billion, and Estimize -the financial estimate crowdsourcing website, expects a slightly higher revenue of $11.615 billion. This is about $ 1 billion more than in the previous quarter and more than double the amount in the second quarter of 2020.

The delivery figures will be the key metric to watch. Source: Visible Alpha; Tesla.

Tesla (TSLA.US) stock price broke above the downward trend line, which potentially signals that buyers have taken control of the market. Currently, the horizontal zone at $ 631.00 acts as the key support and as long as the price sits above it, the trend remains upward. Only the negation of the aforementioned support at $631.00 may lead to a deeper pullback towards $ 545.00. Source. xStation5