Tesla stock has rallied after earnings were reported on Wednesday. All eyes seem to have been watching this week. We laid out two points we were looking out for ahead of these earnings.

One of these points was about the supply issues. The outlook for future deliveries went from 310,048 vehicles in Q1 to 254,695 in Q2. Tesla stated that they plan to grow production and expect to achieve 50% average annual growth in deliveries.

Overall, the stock price has reflected that investors have reacted well to Tesla’s earnings. With the price up nearly $100 from the closing price before earnings

Technical analysis

In the weeks following the earnings, the Tesla stock price consolidated. Price consolidation is always healthy for a stock before its next move, wether that is a reversal or continuation. This consolidation before a good earnings report led to a strong breakout. But where could the price go next?

Not only is Tesla moving up in price, but the market is now making a move higher. S&P500 futures are up 7% in just over a week. However, as the economy battles inflation and an imposing recession, the market still has the ability to make a quick move back down as bulls gain hope. For now, we think there could be some stability and this is good news for Tesla.

We think the stock price could rise towards $945 and reclaim $1,000 over the next few weeks. In April, the price consolidated above $975. This is a level we will be watching as there may be resistance here. But overall, we think the latest outlook by Tesla and a stabilising market could see the stock price continue to grow in the near future.

Chart provided by TradingView


Other points to note about Tesla’s future outlook: The have sufficient cash to continue their operations. These include the Gigafactory in Berlin and Austen. They also expect to see innovations reduce their manufacturing costs and hardware and software related profits to accelerate.

August 4th is a date to note as Tesla have scheduled in a shareholders meeting which could provide more insight into the upcoming months.

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