Tesla: 2 Plays Ahead of Next Week's Earnings Report

Core Viewpoint - Tesla's upcoming earnings report is critical, with shares having increased nearly 50% from recent lows, creating a pivotal moment for investors [1][2]. Group 1: Earnings Expectations - Investors are anticipating whether Tesla will deliver strong earnings to support recent stock gains or face a potential reversal [2]. - Analysts from Mizuho and Wedbush maintain bullish outlooks, emphasizing Tesla's long-term potential and recent execution improvements [3][6]. - A significant price target of $500 from Wedbush analyst Dan Ives suggests over 50% upside potential, driven by Tesla's leadership in electric vehicles and autonomous driving prospects [5]. Group 2: Trading Strategies - A bullish trading strategy suggests buying or increasing positions ahead of earnings, with potential for shares to rise towards $370 or $400 if results exceed expectations [7]. - A cautious approach recommends scaling into a small position to manage risk while waiting for earnings clarity, with the possibility of buying more shares at a discount if the stock dips [11][12]. Group 3: Risks and Concerns - A downgrade from William Blair's analyst highlights risks, particularly the removal of the $7,500 EV tax credit, which could negatively impact sales and profitability [9][10]. - The potential for a sharp pullback exists if earnings reveal negative demand outlooks or margin pressures, with key technical support around $280 [13].