Since the high of 2021 Tesla’s share price has dropped over 60% as investors fled rate sensitive tech companies on expectations of tougher financial conditions ahead.
The question now is, ‘will the US manage a soft landing’ and potentially be able to avoid a US recession altogether.
Although not the base case, which sees a coming US recession, there is a chance the US avoids it.
According to Ed CIissold, the Chief US strategist at Ned Davis Research, his firm see’s a 25% chance that the US will avoid a recession this year.
Does this mean that Tesla’s falls could make the stock a bargain stock to buy into ahead of their earnings after the close on Wednesday?
Will Tesla’s latest cost cutting plans work? Tesla delivered 1.31 million deliveries in 2022 up from 308K in 2021.
Over the last 12 years Tesla shares have gained 8 times between January 20 and February 04. The average return has been 6.46% and the maximum gain an incredible 62.11% in 2020.
So, could this earnings release on Wednesday mark ‘Tesla’s Time to Turn’, or will it make a wrong turn for Tesla?
Major Trade Risks:
The main risk here is that Tesla’s earnings disappoint and/or there are growing signs of a hard US landing impacting sentiment
Remember, don’t just trade it, but Seasonax it!