Tesla (TSLA) is scheduled to report its second-quarter results after the market closes on Wednesday, with investors expecting the electric vehicle maker’s stock to make a sizable move after the report.
Based on recent options pricing, Tesla stock is seen moving close to 7% or almost $22 in either direction from Monday’s close near $329 by the end of this week’s trading sessions. At the high end, that would leave Tesla stock at just over $350, with the low end falling at roughly $307.
Tesla shares rose 5.4% the day after the electric vehicle maker’s first-quarter report, when CEO Elon Musk told investors he was weeks away from leaving his work with the Trump administration. They gained nearly 3% following Tesla’s January fourth-quarter report, after surging nearly 22% and falling 12.3%, respectively, after each of the two previous quarters‘ earnings.
Tesla shares have lost nearly 20% of their value since the start of this year. They have recovered from the lows they experienced in March and April when Tesla was the subject of protests while Musk was working in the federal government, but have still been pressured in recent weeks as Musk has continued to insert himself into politics on social media.
The EV giant is expected to report an over 10% decline in revenue from the same time a year ago to $22.78 billion, while adjusted earnings per share are projected to drop nearly 20% to 42 cents, per estimates compiled by Visible Alpha. Analysts have said recently the stock could respond more to Musk’s comments about Tesla’s recently launched robotaxi program and other projects than the company’s quarterly financial results, as the shares rose earlier this month despite deliveries missing estimates.
Among the analysts tracked by Visible Alpha who follow the company, eight call Tesla stock a “buy,” compared with five “hold,” and four “sell” ratings. Their average price target at $301 is about 8% below Monday’s level.