Tesla is coming out of a crazy week.
The automaker is undergoing investigations in the U.S. after a fatal accident in Texas and is being criticized in China after a woman protested in a large auto show.
Morgan Stanley is staying in stock. Analyst Adam Jonas raised his target price to $ 900, which implies a 23% increase. The stock closed Friday at $ 729.40.
All of this came before the profits released on Monday afternoon. Analysts expect earnings of 75 cents per share in the quarter ended in March, up from 25 cents a year earlier. according to FactSet. Sales must have grown 75%, to $ 10.48 billion.
Danielle Shay, director of options at Simpler Trading, says the recent bad news about the company has kept control of the shares.
“This puts you in a great position on the earnings report. If you look at how Tesla behaved about earnings – yes, in the last quarter they retreated after earnings, but that was after doubling the stock price over the quarter – before that, we saw Tesla negotiating more with profits, ”Shay told CNBC’s“ Trading Nation ”on Friday.
History should repeat itself this quarter, she predicts.
“It’s a great opportunity to sell placement credit spreads, in cash or out of cash, to really take advantage of this high implied volatility due to all the news surrounding Tesla, and I am looking for action to trade higher after the report ”Said Shay.
Even if it is not so, Shay is still optimistic about the actions. She says that any setback presents an opportunity to buy based on weakness.
Craig Johnson, chief market technician at Piper Sandler, is also a Tesla fan looking for revenue.
“The stock is still 20% below its maximum … [but] we have broken the uptrend support line and, from my perspective, this is a stock that should be bought in the direction of profit. If you look back at the quarterly earnings impressions, you will see that 70% of the time that stock has outperformed financial results. “
Tesla’s parabolic increase in 2020 saw a median growth this year. Inventory rose 3% in 2021, outperforming the 11% increase in the S&P 500