Tesla is set to present its second-quarter performance statistics this Wednesday, after the markets close. Investors predict a potential dramatic shift in the value of the electric car maker’s stock. Options pricing suggests possible movements close to a 7% rise or drop, equivalent to nearly $22 from Tuesday’s end-of-day value of approximately $332. This means the share price could fluctuate from just under $311 to approximately $354 by this week’s conclusion.
In light of the company's first-quarter report, Tesla’s share value increased by 5.4% the following day, as CEO Elon Musk announced his intentions to leave his role with the Trump administration in the forthcoming weeks. Meanwhile, the release of the fourth-quarter report in January saw the share price increase nearly 3%. Despite experiencing a significant fall in share value earlier this year, Tesla's stock has partially recuperated from the downturn felt in March and April during widespread protests in the wake of Musk’s association with the federal government.
However, recent political commentary by Musk on social media has again sparked controversy, causing further pressure on the company's share value. Projections indicate that Tesla's Q2 report will disclose an over 10% drop in revenue compared to the same period the previous year, plummeting to around $22.74 billion. Adjusted earnings per share are also forecast to fall by nearly 20% to 42 cents, according to data compiled by Visible Alpha.
Analysts believe the stock's reaction could depend more on Musk's comments concerning the recently introduced robotaxi initiative and other major projects than on Tesla’s Q2 financial results. Despite a disappointing delivery below estimates made earlier this month, the stocks rose. Of the analysts monitored by Visible Alpha, nine recommend buying Tesla stock, whereas five suggest holding, and four advocate selling with an average target price of $310, nearly 7% below Tuesday’s closing figure.