Trading Strategies For Tesla Stock Before And After Q4 Earnings

Tesla, Inc (NASDAQ: TSLA) was trading mostly flat Wednesday as the company kicks off big tech earnings season with its quarterly report after the close.

When Tesla printed a third-quarter earnings miss on Oct. 18, the stock plunged the following session over 9% lower and entered a steep downtrend, declining an additional 11.83% to reach a bottom of $194.07 on Oct. 31

For that quarter, Tesla reported revenue of $23.35 billion, which missed the $24.38-billion consensus estimate. The company reported earnings per share of 66 cents, missing the Street estimate of 73 cents.

For the fourth quarter, analysts, on average, estimate Tesla will report earnings per share of 74 cents on revenues of $25.59 billion.

Tesla delivered 484,507 vehicles during the fourth quarter, exceeding the Streets estimate of 480,000 deliveries. Read more here…

Read Next: Tesla Gears Up For Q4 Print; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Trending: Elon Musk Says His Relationship With Johnny Depp’s Ex-Wife Amber Heard Was ‘Mind-Bogglingly Painful’ And Brutal — ‘I Am Often A Fool, But Especially For Love’

Traders and investors will be paying particular attention to Tesla’s margins and profitability during the fourth quarter. Crypto enthusiasts may also be interested in whether Tesla positioned itself for the SEC’s approval of the first spot Bitcoin ETF by adding to its digital asset holdings during the fourth quarter.

Traders looking to play the potential upside in Bitcoin (CRYPTO: BTC), without taking a position in Tesla could choose to do so through the Grayscale Bitcoin Trust ETF (ARCA: GBTC).

GBTC is highly liquid, offering traders and investors a high level of flexibility to manage their trades, with an average 30-day trading volume of over 14 million shares.

From a technical analysis perspective, Tesla’s stock looks bearish heading into the event, trading in a downtrend and forming a possible bear flag pattern. It should be noted that holding stocks or options over an earnings print is akin to gambling because stocks can react bullishly to an earnings miss and bearishly to an earnings beat.

Traders and Investors looking to play the possible downside in Tesla stock but with diversification may choose to take a position in the AXS Short Innovation Daily ETF (NASDAQ: SARK). SARK…