Trading just barely below yearly highs, Tesla, Inc. (TSLA) will report quarterly earnings on Wednesday, February 22 after the market closes. Expect orders and bookings to dictate the stock trading action following the report.
Two things that will have a positive impact on company’s business are its expansion into India and the progress of Tesla 3 to market. On Feb. 8, CEO Elon Musk said it hopes to launch in India this summer. Tesla’s supercharger and battery storage complement that of India’s plans on moving energy towards manufacturing solar.
At a market capitalization of over $40 billion, TSLA has a similar market cap as that of Ford Motor Co. (F) and General Motors (GM). These traditional automobile companies trade at a P/E of 11x and 6x, respectively. A confirmation of Tesla 3’s production schedule and strong sales figures for its existing Model X and Model S could lift TSLA shares higher.
Even if Tesla reports weak sales but a strong booking number, shares may not sell-off much. Investors are highly bullish on the company’s growth prospects. Tesla’s dominance in the EV market will prevent short-sellers (where short float is 27%) from making much money from the stock.
