To The Moon

As $Tesla Motors(TSLA)$ prepares for its Q4 2024 earnings release on January 29, 2025, analyst opinions are split. Wedbush analysts are optimistic, expecting regulatory benefits for Tesla's autonomous vehicles in a potential second Trump term.

Conversely, JPMorgan analysts are pessimistic, citing Tesla's first year-over-year decline in deliveries and potential cuts to EV tax credits that could hurt sales amid rising competition.

Tesla Price Analysis reflects 2 opposing views

We can observe that Tesla currently shows two sets of trends in its chart.

Tesla's premarket price today is $389.63, which is down from last week's close of $406.58. This is over 4% drop.

Short-Term Trend:

• The chart shows a recent pattern of lower highs, which suggests a short-term bearish sentiment. This indicates that in the near term, Tesla's stock is experiencing decreasing peak prices, which could point to a cooling off from previous gains.

Long-Term Trend:

• Despite the short-term bearish signals, the long-term trend of the stock remains bullish. This is evidenced by the consistent formation of higher lows over an extended period, as shown by the ascending blue line. This trend line confirms that Tesla has been maintaining a strong upward momentum over time.

Support Levels:

• Two crucial support levels are identified on the chart:The first support level is at approximately $361.90. This level could play a pivotal role in sustaining the long-term bullish trend if tested.

• The second, deeper support level is at around $330.54. This acts as an additional buffer that could stabilize price drops, ensuring the continuation of the overall uptrend.

Trading Tesla Earnings

Before the Earnings Announcement:

1. If traders expect Tesla to beat estimates due to strong production or delivery numbers, they might utilize Long DLCs (e.g. $TESLA 3xLongSG261006(TSYW.SI)$ to capitalize on potential post-earnings gains.

2. Conversely, if market sentiment is negative (e.g., concerns over declining deliveries or competition), traders may use Short DLCs (e.g. $TESLA 3xShortSG261006(TSXW.SI)$ ) to take advantage of anticipated price drops.

Advantages of Using DLCs for Earnings Trading

Leverage on Price Movements:

• DLCs amplify daily price changes, allowing traders to maximize potential profits from the typically large swings seen during earnings events.

Lower Capital Requirement:

• DLCs require less capital compared to trading underlying stocks directly, making them accessible for traders looking to capitalize on earnings volatility without significant upfront investment.

No Margin Calls:

• Unlike other leveraged instruments, DLCs do not involve margin trading, eliminating the risk of margin calls and making them simpler to manage.

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Disclaimer: 

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only. 

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.