Vladimir Zernov
Add to Bookmarks

Tesla Video 27.04.21.

Tesla Stock Moves Lower As Traders Focus On Supply Chain Problems

Shares of Tesla found themselves under pressure after the company released its first-quarter results. Tesla reported revenue of $10.4 billion and adjusted earnings of $0.93 per share, beating analyst estimates on both earnings and revenue. GAAP earnings of $0.39 per share missed analyst estimates, but the market is traditionally focused on Tesla’s non-GAAP earnings.

Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

The company reiterated its plan to achieve 50% average annual growth in vehicle deliveries in the long-term. In 2021, Tesla will have to deal with significant supply chain problems due to disruptions brought by the coronavirus pandemic and increased demand for certain parts, including chips.

Traders also keep an eye on revenue from regulatory credits which may decline as other automakers start producing electric vehicles in large quantities. At this point, the market does not look too worried about this issue, but traders may become more focused on regulatory credits and competition in general closer to the end of this year.


What’s Next For Tesla?

Analysts expect that Tesla will report earnings of $4.33 per share in 2021 and $5.93 per share in 2022, so the stock is trading at a roughly 120 forward P/E. Tesla is viewed as a disruptor to the mobility segment so traditional metrics do not provide a full picture of the company’s valuation, but the company will still have to show significant growth to justify current stock price levels.

Tesla stock had a very successful 2020 and was included into S&P 500, but now the company may need additional positive catalysts to gain sustainable upside momentum from current levels. Tesla’s report easily beat analyst expectations, and the company continues to grow at a fast pace, but the market may want even more at current stock price levels.

Tesla shares are trading more than 20% below yearly highs so many traders will view current prices as an opportunity to add to their positions or establish new ones, but it remains to be seen whether the stock will be able to get back to the upside mode in the near term amid supply chain problems.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker