Tesla is surging ahead of its earnings

Markets Insider

  • Tesla is up roughly 2% in trading Wednesday ahead of its fourth-quarter earnings report.
  • The company has established a trend of missing earnings and delivery expectations.

Shares of Tesla are up about 2% in early trading Wednesday after CEO Elon Musk’s other company, SpaceX, successfully launched a Roadster on it’s Falcon Heavy rocket Tuesday afternoon.

The company will also report earnings for the fourth quarter after the closing bell Wednesday. Wall Street analysts expect Tesla to post an adjusted loss of $3.16 per share, on revenue of $3.28 billion, according to Bloomberg data.

Tesla has historically missed key production deadlines, delivering just half of the cars analysts expected last month, yet its stock price continues to climb. In January, CNBC reported production of Tesla’s Model 3 sedan could be even more delayed thanks to an ongoing battery assembly issue. The automaker denied the reports.

“Model 3 production will be the most important driver of TSLA shares in 2018,” Nomura Instinet analyst Romit Shah said in a bullish note to clients Wednesday. “We maintain our positive long-term outlook on Tesla and reiterate our Buy rating and $500 target price.”

Wall Street price targets for Tesla vary widely, with the consensus coming in at $314 – 9% above where the stock was trading Wednesday morning.

Investors on the trading app Robinhood, most of which are millennials, are much more bearish on Tesla than Nomura.

“Investors are selling TSLA 30% more than they are buying, leading up to earnings,” data scientist Dr. Sahill Poddar told Business Insider. “The recent market downturn could influence this, as many are booking profits in the stock market. This figure was at 20% ahead of the last earnings report.”

You can track Tesla’s stock price in real-time leading up to earnings on Markets Insider here>>