How Tesla Stock Is Trading ahead of Q4 2018 Earnings



Tesla’s Q4 2018 earnings

Tesla (TSLA) is slated to release its Q4 2018 earnings on January 30. After outperforming the broader market and its peers, Tesla stock turned negative in the first quarter of 2019. In the fourth quarter of 2018, the stock rose by 25.7% against 14.0% losses seen in the S&P 500 Index. Before we begin to look at analysts’ estimates for Tesla’s Q4 2018 earnings, let’s review why its stock is underperforming its peers and the broader market in January.

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Underperforming in January

As of January 25, the broader market was trading on a positive note with about 6.3% gains in S&P 500 benchmark so far in January. Meanwhile, the stocks of automakers (XLY) General Motors (GM), Ford (F), Fiat Chrysler (FCAU), NIO (NIO), and Toyota (TM) were in positive territory. On a month-to-date basis, GM, F, FCAU, NIO, and TM have gone up by about 15.5%, 15.8%, 15.8%, 4.4%, and 6.6%, respectively.

In contrast, Tesla stock has lost 10.7% month-to-date, which makes it the worst performing automaker in January so far. Investors’ low expectations from the company’s upcoming earnings and negative news related to recent layoffs could be two of the key reasons for its underperformance this month.

In January so far, tech companies NVIDIA (NVDA), Intel (INTC), and Alphabet (GOOG) are trading with 20.0%, 0.2%, and 5.4% gains, respectively. Apple (AAPL) is trading without any month-to-date change.

In this series

In this series, we’ll explore what analysts are estimating for Tesla’s Q4 2018 financials. We’ll look at estimates for TSLA’s earnings, revenue, and margins. Also, we’ll take a look at analyst recommendations for Tesla stock, its valuation multiples, and some key technical price levels later in this series.

Let’s begin by looking at analysts’ expectations from Tesla fourth-quarter earnings in the next part.


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