Before getting into the details of TSLA earnings. I want to share an important tip for my fellow traders. NEVER trade out of anger and emotion,keep to yourself and always keep things at an even keel. Say you make 20% one day, you can easily lose everything the next. Always remain humble. Back throughout the last weeks of september & october i bought 15 shares of Tesla from the 174-159 range thinking to myself this is a great long term stock. Everything was going well until the stock tanked after earnings. After the crash I promised myself to hold Tesla, as i quote Elon Musk ” We really are production-restrained, not demand constrained” After all there wasn’t a major flaw in the companies fundamentals as it is always better to be production restrained than demand constrained. Few days later came a fire that really hit the stock ($130 ) Even then I held the stock I was always hot headed so i was surprised I held it that long. After a few weeks of low activity Tesla dropped to 123. I finally lost it before i knew it I sold Tesla at 123.4001 at a 35% loss. To this day I kick myself everyday over selling Tesla at its absolute lowest.. Hopefully you all will learn from my mistake.
Fast forward current day Tesla is sitting at 198.23. This isn’t a make or break earnings for Tesla but it is easily the most important ER to day. After breaking out and establishing themselves and going through their first crisis. Tesla must show that they can rebound. Based on the early reports by the company( Tesla said that it expects Model S shipments in Q4 to beat the company’s previous guidance as much as 20%) , Tesla is going to beat earnings. Wallstreet expects them to report earnings of 19 cents a share on 646 million in revenue. The IV on Tesla options are through the roof and it only Sunday. TSLA ER are on Feb 19 during after hours. If Tesla beats earnings I could easily see them hitting 220 and in perfect world 240. FEB 22 200$ calls are sitting at 11.10X11.25 FEB 22 205$ are sitting at 8.85X9.05 FEB 22 $210 calls are sitting at 7X 7.10. Put options on Tesla aren’t cheap either FEB 22 195 $ Puts are at 13.50X 13.70 with FEB 22 190 Puts at 16.20X16.45 .
Tesla is installing more and more superchargers throughout the nation. In addition these chargers are stronger than the ones they have installed in the past. With the recent news of Tesla’s expansion in China the future is bright for Elon Musk and Co.