Tesla Stock Price Prediction: TSLA Drop after 2nd Quarter Report

• The Tesla, Inc (NASDAQ: TSLA) stock price is trading at $260.02, with a market capitalization of $824.134 Billion.
• Tesla’s share average volume for the past 24 hours is 161.786 Million and last 10 days average volume is 126.313 Million.

Tesla, Inc. has been in bullish momentum, giving around 119.48% of returns year to date and 91.37% of returns in the last six months. However, it has slowed down in the past month, giving only 3.69% of returns and a negative return of -6.13% in the last week. The growth in the stock shows that investors trust TSLA.

Fundamental Analysis of Tesla

Tesla, Inc.(TSLA) is a popular American company that produces electric vehicles, solar panels, and battery energy storage systems. The company is widely known for its CEO Elon Musk and its mission to accelerate the transition to sustainable energy.

TSLA has a market capitalization of $824.134 Billion. The stock’s 52-week price range of $101.81 to $314.67 shows excellent growth in this period.

The revenue of the company increased year by year. In 2022, it reported a revenue of $81.46 Billion with a net income of $12.588 Billion. The profit margin was 15.45%. The company had a debt of $5.75 Billion, but also a free cash flow of $7.56 Billion and cash and equivalents of $16.55 Billion.

In Q1 2023, Tesla’s total revenue increased by 24% compared to the same quarter last year, reaching $23.3B. However, operating income declined to $2.7B in Q1, resulting in an operating margin of 11.4%. Tesla’s cash, cash equivalents, and investments grew by $217M from the previous quarter to $22.4B in Q1, mainly due to a free cash flow of $441M.

Tesla’s total revenue rose by 47% compared to the same quarter last year, reaching $24.9B in Q2 2023. However, operating income dropped slightly to $2.4B in Q2, resulting in an operating margin of 9.6%. Tesla’s cash, cash equivalents, and investments grew by $0.7B from the previous quarter to $23.1B in Q2, mainly due to a free cash flow of $1.0B

The Tesla, Inc Price Technical Analysis

Source: TSLA/NASDAQ by TradingView

Last week, bears overpowered the bulls, and the share dropped by -6.12%. However, the price is currently above the 50 and 200 SMA but it is falling in downward direction. If buyers keep supporting the share, TSLA stock prices can rise again and enter an uptrend. Moreover, the golden cross confirms the positive trend in the share.

Right now, MACD is in the positive area, but the MACD line crossed below the Signal line and both are facing downward resulting in a slowing down of momentum.

The RSI line is at 48.50, which indicates that the stock is heading toward the oversold zone. In addition, the 14-day Simple Moving Average (SMA) line is at 65.37, above the RSI, indicating a negative price direction in the short term.

Conclusion

Tesla’s stock price plunged after the second-quarter reports. TSLA reported a drop in gross margins to a four-year low, which triggered a negative reaction in the market. RSI and MACD indicate bearishness in the stock. The stock direction depends on whether the buyers support it or not. If buyers support the share, it may bounce back from the 50-moving average. However, investors and traders should wait for a perfect setup and avoid FOMO (fear of missing out) before making any move.

Technical Levels:

• Support – Support levels are $240 and $235.

• Resistance – Resistance levels are $300 and $312.

Disclaimer

This article is only for information and does not give any financial advice or suggestions about buying, selling, or holding any financial instrument. Please note that financial markets are risky and unpredictable, and past performance does not guarantee future results.