What's Going On With Tesla Stock Ahead Of Earnings Tuesday?

Tesla Inc TSLA shares are in the spotlight Tuesday ahead of earnings. Here’s what you need to know.

What To Know: Tesla shares hit new 52-week lows on Monday, a day ahead of earnings. The stock has been facing heavy selling pressure in recent months due to waning EV demand trends. The EV maker has reported weak quarterly results in two straight quarters and many analysts are concerned the company will turn in disappointing results after the bell.

GLJ Research analyst Gordon Johnson recently warned that Tesla could report its first negative free cash flow quarter since 2020, citing excess production, slowing demand and inventory build problems. Johnson also pointed to continued weakness in insurance registration data out of China as a potential headwind for the company.

Wedbush’s Dan Ives recently referred to this earnings report as a fork in the road for Tesla. The analyst said the Street needs CEO Elon Musk to explain his rationale for cost cutting and provide a product roadmap and overall vision. Otherwise, the “Category 5 perfect storm of weak demand” Tesla is experiencing in 2024 is going to continue to be the story going forward, he said.

Here’s a look at all of the analyst changes over the last two weeks leading up to earnings:

• Piper Sandler analyst Alexander Potter maintained Tesla with an Overweight and price target of $205.

• Wedbush analyst Daniel Ives reiterated Tesla with an Outperform and maintained a price target of $300.

• Deutsche Bank analyst Emmanuel Rosner downgraded Tesla from Buy to Hold and lowered the price target from $189 to $123.

• Baird analyst Ben Kallo maintained Tesla with an Outperform and price target of $280.

• Barclays analyst Dan Levy maintained Tesla with an Equal-Weight and lowered the price target from $225 to $180.

• GLJ Research analyst Gordon Johnson maintained Tesla with a Sell and lowered the price target from $23.53 to $22.86.

• Wells Fargo analyst Colin Langan maintained Tesla with an Underweight and lowered the price target from $125 to $120.

• Citigroup maintained a Neutral rating on Tesla and lowered the price target to $180

The slide in Tesla stock has accelerated in recent weeks. Last week, Tesla shares faced selling pressure on reports the EV maker was planning to lay off more than 10% of its workforce. Separate reports also suggested that Tesla had pushed back the scheduled delivery dates for multiple Cybertruck buyers without providing a reason for the delay.

Tesla shares continued to move lower this week after the company introduced a fresh round of price cuts in the U.S., and then slashed prices in a number of other major markets, including China and Germany.

Tesla is expected to report EPS of 51 cents and revenue of $22.33 billion after the market close on Tuesday, according to estimates from Benzinga Pro. Analysts and investors will be paying close attention to margins and the company's outlook.

See Also: ‘Maybe:’ Elon Musk Hints Driverless Teslas May Debut In This US State, But Bugs Will Take Few Months To Fix

TSLA Price Action: Tesla shares are down about 42% year-to-date. The stock was up 2.08% at $145.01 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Tesla.