Supply Chain Issues Overshadow Tesla's Earnings Beat

The equity is brushing off at least six price-target hikes

Digital Content Manager
Jan 27, 2022 at 10:27 AM
facebook twitter linkedin


Tesla Inc (NASDAQ:TSLA) is down 3.8% to trade at $901.55 at last check, despite the electric vehicle (EV) giant reporting better-than-expected fourth-quarter earnings of $2.54 per share, as well as a revenue beat. Plus, the company projected deliveries to grow 50% year-over-year in 2022, though it noted supply chain issues are likely to persist and delayed the production of its Cybertruck until 2023.
 

Analysts are responding to the update with enthusiasm, however. The security received at least six price-target hikes this morning, including a lofty one from Canaccord Genuity to $1,200 from $1,040. Analysts are still relatively split towards TSLA, with 10 calling it a "buy" or better, while 11 say "hold" or worse. Meanwhile, the 12-month consensus target price of $982.38 is a 10.5% premium to current levels.

Despite the negative price action, options bulls are coming out of the woodwork as well. So far, 135,000 calls have crossed the tape, which is double the intraday average. Most popular is the weekly 1/28 1,000-strike call, followed by the 850-strike put in the same series, with positions being opened at the latter.

On the charts, Tesla stock has experienced some volatility since surging to an Oct. 4, record high of $1,243.49. The shares bounced off long-time support from the 120-day moving average earlier this week, but are now pacing for their first close below this trendline since late July. In the last nine months, TSLA has added 31.9%, though.

 
 
 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1