TESLA INC. (NASDAQ:TSLA): Tesla Q1 earnings were a disaster but the stock could trade sideways until Robotaxi launches in June


The Tesla Q1 earnings report on Tuesday was way worse than expected as revenue was down 9% Y-O-Y while net income plunged 71%, compared to a year earlier. Despite a disastrous performance, Elon Musk remains bullish on Tesla, saying that his company will one day be the most valuable company in the world with its market capitalization larger than the next top five companies combined. Investors jumped into the stock as they seem to be convinced by his comments. Beware that Tesla stock's downtrend remains intact, though.

The stock closed at $250.66 on Wednesday, just below its 600 day-EMA ($252.10), but slightly above the key support at $245.27, or a 50% pullback from its high. There are plenty of resistance levels between $270 and $290, so we think that $TSLA could trade sideways until the Robotaxi launch in June, unless Elon Musk surprises investors with big news!

This note contained herein is our opinion and should not be construed as a recommendation to buy or sell. Click here to view the latest update!



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