📉Tesla Sinks on Earnings

And how to trade it from here

Tesla Earnings

Tesla released earnings after market close yesterday and after disappointing results the stock is trading down roughly 6%.

The Numbers

Tesla’s numbers did not live up to analyst expectations:

• Earnings Per Share: Actual - $0.71; Consensus - $0.73

• Revenue: Actual = $25.17B; Consensus - $25.87B

In addition to the weak numbers, the company noted that they expect demand to slow in 2024 vs. 2023.

There is also uncertainty in management with Elon Musk stating that he wants more equity in the company to exert greater control over the future of the company and its use of AI.

How to Trade It

I along with many members of the community have been short Tesla for some time. The stock is breaking the weekly 55 SMA and 200 SMA which is a recipe for disaster.

Rallies can be short opportunities.

For more information on the market and TSLA earnings, watch the video below: