Tesla crash affects share price ahead of imminent Q1 reporting

An unfortunate event in Texas rocked Tesla share prices this week when an accident involving a Tesla vehicle claimed two lives; with no driver present at the time of the fatal crash.

There is an official investigation currently underway and so far, no blame can be apportioned to Tesla. Nevertheless the effect was an immediate 7.0% fall in value of Tesla shares on the Nasdaq.

Media king Musk

Elon Musk has struggled to keep himself out of the limelight in recent weeks, or perhaps he has deliberately put himself there. Initially, in the middle of March when he filed to officially change the title of several job roles in the ‘Tesla Empire’ at a cost of $8k. Whereon naming himself as ‘Technoking of Tesla’ with his chief financial officer now labelled ‘Master of Coin’.

Alias the crypto king

Musk also created attention of a different sort when he very publicly announced his support for cryptocurrencies with his acquisition of $1.5 million Bitcoin to use in the Tesla business, meaning that privileged US customers can now purchase their vehicles with Bitcoin.

He also made it abundantly clear that Bitcoin revenue will be maintained separately and will at no stage be converted back to fiat currency.

Mixed reactions

Financial experts have mixed verdicts about Tesla, with Goldman Sachs taking a bullish stance, but Ark Investments shorting. Very much onside with the bulls, Vijay Rakesh from Mizuho Securities sees nothing but great things on the Tesla front, based largely on the doubling of Tesla’s delivery quota over Q1.

Rakesh also referred to Tesla’s rather radical Bitcoin investment decision, stating that “Tesla’s decision to invest $1.5B in Bitcoin earlier this year could provide balance sheet strength given Bitcoin’s 50%+ run since mid-January.”

Not a bad 12 months for Tesla

Despite the ups and downs of Tesla share prices over the last few days, at close of business yesterday, Tesla shares had regained their equilibrium and closed at $744.12, just a tad lower than the opening price at the start of the week and a far cry from the $141 price this time last year.

Tesla is scheduled to report its first quarter results at close of trading on Monday 26th April. As things currently stand, estimates provided by the analysts surveyed by FactSet suggest earnings per share of $0.74 and a revenue totalling $10.38 billion.

What’s to come?

As ever, the charismatic Elon Musk has his fingers in multiple pies. Alongside more technological advances on the battery front, his next projects include developing a fleet of self-driving “robotaxis” and a new battery-powered range of commercial vehicles ranging from 4 x 4 utility trucks through to heavy goods wagons.

Tesla’s commercial enterprise will be run under the close scrutiny of Jerome Guillen, currently president of automotive, who will transition to his newly-created role of ‘President, Tesla Heavy Trucking’. Dan Ives, speaking for respected investment company, Wedbush Securities, confirms that Tesla “…plans to double down on its semi and trucking vision over the next few years.”

With a 527% rise in share price already documented over the last twelve months and share prices back on the rise again, a large proportion of those in the know believe that Tesla is a great investment prospect, with shares likely to rise in value to around $830 by the end of Q2.

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