Since the high of 2021, Tesla’s share price has dropped over 60% as investors fled rate-sensitive tech companies on expectations of tougher financial conditions ahead.
The question now is, ‘will the US manage a soft landing’ and potentially be able to avoid a US recession altogether. Although not the base case, which sees a coming US recession, there is a chance the US avoids it. According to Ed CIissold, the Chief US strategist at Ned Davis Research, his firm sees a 25% chance that the US will avoid a recession this year.
Does this mean that Tesla’s falls could make the stock a bargain stock to buy into ahead of its earnings after the close on Wednesday? Will Tesla’s latest cost-cutting plans work? Tesla delivered 1.31 million deliveries in 2022 up from 308K in 2021.
Over the last 12 years, Tesla shares have gained 8 times between January 20 and February 4. The average return has been 6.46% and the maximum gain – an incredible 62.11% in 2020. So, could this earnings release on Wednesday mark Tesla’s time to turn, or will it make a wrong turn for Tesla?
Major Trade Risks: The main risk here is that Tesla’s earnings disappoint and/or there are growing signs of a hard US landing impact sentiment.
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