Tesla Motors Inc (TSLA): Why Earnings Don’t Matter Right Now

tesla motorsKyle Anderson: Tesla Motors Inc (NASDAQ:TSLA) will report Q1 earnings on Wednesday, May 6, after the bell. Analysts predict an earnings-per-share (EPS) loss of $0.50 and revenue of $1.04 billion.

tesla stock price

But for the Tesla stock price, it doesn’t matter if the company meets those expectations.

TSLA stock is typically volatile following earnings, but the moves don’t always coincide with earnings results. Last year, Tesla stock dipped more than 11% the day after reporting Q1 earnings that beat estimates by 20%.

At Money Morning, we recommend taking a long-term approach with Tesla stock. Day traders can play TSLA’s wild swings, but they are often unpredictable. Any announcement or tweet from CEO Elon Musk will often move TSLA shares several percentage points in minutes.

The same happens after quarterly earnings. That’s why we recommend looking at the long-term…

Looking Beyond Quarterly Earnings with TSLA Stock

In this week’s Tesla earnings report, revenue is expected to climb 46% compared to last year. But analysts expect earnings to fall. Last year, TSLA had Q1 EPS of $0.12.

tesla motors stock price

In the beginning of April, the company announced that it sold a record 10,030 cars during the first three months of the year.

And while Tesla stock price’s short-term performance may hinge on those data points, last week’s unveiling of “Tesla Energy” is much more important for TSLA stock long term.

Last week, Musk unveiled batteries called “Powerwalls” that will be installed in homes.

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