The Tesla (NASDAQ: TSLA) stock price has been under pressure this year. The stock is trading at $918, which is about 28% below its all-time high. As a result, the company’s total market capitalization has dropped to $922 billion. And according to the Bloomberg Billionaire Index, Elon Musk’s net worth has retreated by $32 billion this year alone.
Tesla earnings preview
The Tesla stock price will be in focus on Wednesday this week as investors react to the company’s quarterly earnings that will come after the market closes.
According to SeekingAlpha, analysts expect that the company’s revenue jumped to $16.6 billion in the fourth quarter. That will be a strong performance considering that the company made about $10 billion in the same quarter in 2020.
Tesla had a strong 2021 as demand for its products rose. That performance is evidenced by the fact that the number of cars sold in 2021 was the strongest ever. For example, early this year, the company published strong deliveries numbers.
Tesla produced 305k cars in the fourth quarter and delivered 308k cars to customers. In total, the company delivered over 936k cars in 2021, helped by its China manufacturing plant.
Most of the deliveries in 2021 were Model 3 cars, which the company sold about 911,000 of them. It also sold almost 25,000 Model Y cars during the year.
Tesla has achieved strong growth over the years considering that it had manufacturing challenges a few years ago. Also, as you recall, the automobile industry suffered significant part shortages in 2021. This means that the company has managed to weather the storm better than other companies.
Therefore, there is a likelihood that the company will manufacture and deliver more than 1 million cars this year. Analysts expect that it will launch its Berlin plant later this year.
However, the main mover for the Tesla stock price will be its margins considering that the company was not immune to rising costs. Analysts expect that the company’s earnings per share rose from $1.86 in the third quarter to $2.36 in the fourth quarter.
Is Tesla a good investment?
The Tesla stock price has done well over the years. The shares have jumped by over 24,000% since it went public. It has risen by more than 1,700% in the past five years. During this time, the company has passed other automakers in terms of market value.
There are several catalysts that will push the Tesla stock price higher. First, the company has several products that it is yet to start delivering. For example, it is yet to start selling the cyber track and the semi-product. When it does, there is a likelihood that the stock will keep rising as the company takes market share.
Second, the company is expected to boost production when it launches its plant in Berlin. Third, the firm has managed to weather the chip shortage in a relatively good manner. Most importantly, Tesla has the best market share in the EV industry.
Tesla stock price analysis
The Tesla stock price has been under intense pressure in the past few days. The stock has crashed by over 27% from the highest level in 2021. Along the way, the 25-day and 50-day exponential moving averages (EMA) have attempted to make a bearish crossover pattern. It is also trading at a key support level considering that this price is at the highest level on January 25th. Therefore, there is a possibility that the Tesla stock will bounce back after earnings.
