Tesla (NASDAQ:TSLA) is roughly 48 hours away from reporting earnings for the first quarter of 2022 on Wednesday, April 20. As this key catalyst approaches, TSLA stock continues to experience volatility.
It has been a turbulent time since the electric vehicle (EV) innovator’s last earnings report. Factoring in both bad and good news and Elon Musk’s current preoccupation with acquiring Twitter (NYSE:TWTR), there has simply been a lot going on.
Now, Wall Street is bracing to see just how good of a quarter Tesla has had through it all.
What’s Happening with TSLA Stock?
This Tesla earnings report is particularly important because investors are so unsure what to expect. While some experts feel the bullish case for TSLA stock remains as strong as ever, other skeptics aren’t so certain. Demand certainly hasn’t been a problem. Rising gas prices have nudged more Americans toward purchasing EVs. In fact, CleanTechnica reports that electric vehicle sales may come close to doubling in 2022. EV demand has also been rising throughout Europe where Tesla is working hard to secure a larger market share.
Rising demand has raised some questions regarding supply, though.
Since the supply chain crisis began, though, Tesla has found ways to meet production goals. The company recent confirmed that it had set a new sales record for the first quarter of the year. That statistic alone should reassure Tesla investors that the company is on track to keep growing. But where exactly will things fall in Q1? Tesla is navigating somewhat of a balancing act between factory shutdowns in Shanghai and newly opened factories in Berlin, Germany and Austin, Texas.
Investors should also note that Tesla has done an impressive job generating momentum in Q1. The recent Cyber Rodeo in Austin set the internet buzzing as Musk provided updates on the Cybertruck and Tesla Roadster. While neither vehicle will be on the road until 2023, history has taught us that the buzz around them is often enough to send TSLA stock up. Musk has also made it clear he has no intentions of retreating.
What Comes Next
Lastly, it is important to note that Wall Street continues to believe in Tesla. The analysts who were bullish prior to the year’s first earnings call maintain high price targets and “buy” ratings. This list includes Dan Ives of Wedbush, Adam Jonas of Morgan Stanley and Alexander Potter of Piper Sandler. As InvestorPlace contributor Joel Baglole notes, analysts are expecting earnings per share of $2.26 on revenue of $17.76 billion.
Investors already know that Tesla has had an impressive sales quarter. While TSLA stock has seen plenty of turbulence, there’s no reason to suspect that Wednesday’s call will bring anything too concerning. If anything, it should provide another sign that Musk and Tesla will keep pushing ahead.
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Originally published on InvestorPlace.com
On the date of publication, Samuel O’Brient did not hold (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.
