Tesla Gears Up for Highly Anticipated Earnings Report

Elon Musk, Tesla's CEO, is currently bidding to buy Twitter

Deputy Editor
Apr 18, 2022 at 3:33 PM
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In a moment that seems ripe for parody, Tesla Inc (NASDAQ:TSLA) reports first-quarter earnings after the close on Wednesday, April 20. While CEO Elon Musk dances with Twitter (TWTR), some on Wall Street question the impact Musk's divided attention will have on his flagship company. Below, we'll breakdown some of TSLA's past post-earnings activity and explore its current technical setup. 

Tesla stock moved into the red the day after reporting in six of its last eight quarters, though it popped 3.3% following its October report. This time around, options traders are pricing in an 8.4% post-earnings swing for TSLA , which is more than double the 4.1% move the stock averaged over the past two years, regardless of direction.

At last check, Tesla stock sits at $988.88, and sports back-to-back weekly losses of 5.5% and 4%, respectively. TSLA is down 6.1% year-to-date, but its 320-day moving average caught the sharper late-February pullback. The trendline has only been breached twice on a closing basis. 

TSLA Chart 2 April 18

Put traders are active, per TSLA's Schaeffer's put/call open interest ratio (SOIR) of 1.28. This ratio ranks in the 78th percentile of its annual range, showing a penchant for puts among short term options traders. 

It's also worth mentioning the stock's Schaeffer's Volatility Scorecard (SVS), which sits at a relatively high 76 (out of a possible 100). This is a boon for premium buyers, as it indicates TSLA indicating had a tendency to exceeded options traders' volatility expectations in the past year.


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