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Tesla (TSLA) Stock Navigates Volatility Ahead of Jan. 25 Earnings Call

Tesla (NYSE:TSLA) stock is highly volatile today in anticipation of the company’s Q4 earnings call. The electric vehicle (EV) leader is preparing for a very important earnings call, scheduled for Jan. 25 after the close of markets.
With …

Tesla (NYSE:TSLA) stock is highly volatile today in anticipation of the company’s Q4 earnings call. The electric vehicle (EV) leader is preparing for a very important earnings call, scheduled for Jan. 25 after the close of markets.

With TSLA stock trading near a two-year low, investors have plenty of questions about Elon Musk’s plans for the coming year. The CEO has been more focused on Twitter than Tesla lately, sending shares of his first company into a downward spiral since his October 2022 acquisition. Now, the controversial business leader has the chance to reassure investors that Tesla is on track for a turnaround in 2023.

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Let’s take a look at what investors can expect as Tesla gears up for its first earnings report of the year.

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What’s Happening With TSLA Stock

In keeping with its recent patterns, TSLA stock has been highly volatile today as Wall Street eagerly waits for updates on its earnings and guidance. Shares fell this morning as markets opened, and while they reverse course fairly quickly, their current trajectory hints that they could easily dip again. As of this writing, TSLA stock is up by 0.28% for the day. But with this type of volatility, it’s hard to predict where the stock will go. This is especially true with a looming earnings report.

As InvestorPlace contributor Dana Blankenhorn notes, Wall Street analysts are mixed on TSLA stock. Some experts feel that Tesla’s sales and service channel justifies its stock price. But others see its slow growth as a bellwether for difficult days ahead. As Blankenhorn notes:

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“Analysts are worried about Musk, who sold off TSLA stock to buy Twitter and remains distracted with running the social media platform. Elon Musk’s image has taken a hit. His December stock sales — which came before Tesla warned on deliveries — may trigger an insider trading probe.”

TipRanks rates TSLA stock as a “moderate buy.” But while Morgan Stanley maintains a “buy” rating, analysts from both JPMorgan and Bernstein have issued bearish takes and rated the stock as a “sell.” Wall Street estimates that Tesla will report Q4 revenue of $24.07 billion and adjusted earnings per share (EPS) of $1.13. As Yahoo Finance reports, reaching either or both would be a substantial increase from Tesla’s recent reports.

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However, the company’s price cuts have spurred further uncertainty and pushed TSLA stock down in the process. As InvestorPlace contributor Will Ashworth notes, “The company is trying to capture market share at the expense of profits in a move similar to what Jeff Bezos might have done in years past with Amazon (NASDAQ:AMZN).” Ashworth also highlights the fact that Musk’s management style is looking increasingly questionable to many, potentially compromising investor confidence.

The Road Ahead

As noted, the Tesla Q4 earnings call is Musk’s chance to help TSLA stock rise again. It certainly needs a positive catalyst after falling more than 46% over the past six months. Meanwhile, competition continues to rise as other EV producers scale operations and take strides toward chipping away at Tesla’s market share. If the company wants to stay ahead in the EV race, it needs to show investors why 2023 will be a growth year. All eyes will be on Tesla today as the Q4 earnings call approaches.

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On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs. O’Brient loves helping everyone understand the complexities of economics. He is ranked in the top 15% of stock pickers on TipRanks.

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