Tesla Q1 earnings: strong deliveries, unfavourable headlines

Tesla is thanks to report Q1 earnings on Monday. The numbers come as Tesla has underperformed the broader market, but beat on deliveries. Recent headlines have raised questions over the self driving car function.
Deliveries

Tesla’s vehicle delivery numbers beat forecasts at 185,000 within the first three months of the year. This was before consensus estimates and bodes well for the year ahead. Deliveries are expected to select up firmly within the last half of the year. Expectations are for full year deliveries at 831,000. Guidance for full year deliveries has the potential to maneuver the market so await any number that’s notably above or below this figure.

Competition

Results come Tesla trades 20% off its all time high. With competition increasing there’s an opportunity that Tesla will start to lose some market share. More traditionally focused automobile makers like VW, General Motors and BMW are stepping up their focus and operations towards EVs.

That said, demand is additionally expected to start out increasing for EVs as governments across the world make pledges to chop carbon emissions and boost the sustainability of cities and countries.

Self-driving car

Tesla’s results also come at a time when questions are being raised over its autopilot self driving system. Following a crash earlier in the week , Tesla shares came under some pressure. so as to actually stand out from its competitors Tesla would wish to ascertain significant progress towards the self-driving car goal. Given this week’s headlines we could still be how off here.

Where next for Tesla share price?

Tesla continues to trade above its ascending line dating back to mid-March in a longtime bull trend. It also trades above its 50 & 100 EMA however, more recently the move is stalling. A move above $785 in needed for the buyers to realize traction and therefore the trend resume its upwards march.

Strong earnings could prompt such a move, opening the door to the all time high at $900. A move below $665 100 EMA could see the sellers gain traction and push the costs towards support around $630 the ascending trendline.

For now, much of the great news is perhaps baked into the worth . Very impressive guidance or huge developments within the self driving car would be needed to drive the share price significantly higher.