Tesla Stock Plunges Premarket, Eyes 8-Month Low After Q4 Letdown: Key Levels To Watch For
Tesla's stock plunged in premarket trading after disappointing Q4 earnings. The company reported lower-than-expected earnings per share and revenue. Tesla also indicated that its 2024 vehicle volume growth rate may be lower than in 2023. The stock is currently trading below its moving averages and could potentially breach a crucial support level.
Tesla, Inc. (NASDAQ:TSLA) shares slid in premarket trading on Thursday after the EV giant’s second straight double miss in the fourth quarter.
After the market closed on Wednesday, Tesla reported non-GAAP earnings of 71 cents per share and revenue of $25.17 billion. Both figures fell short of consensus estimates, which anticipated adjusted earnings per share of 74 cents and revenue of $25.58 billion.
The fourth-quarter core auto gross margin of 17.2% exceeded the Street estimate of 16.7%.
Tesla added to investor concerns by indicating in the earnings release that its 2024 vehicle volume growth rate may be significantly lower than the growth rate achieved in 2023, as the company commences work on launching the next-generation vehicle at Gigafactory Texas. CFO Vaibhav Taneja later confirmed this during the earnings call.
If the stock breaches a crucial level around $207.5, historically serving as both support and resistance, it could potentially head towards the next support zones at $193 and $172. Tesla is currently trading below its 50- and 200-day moving averages at approximately $237.6 and $321.6, respectively.
The sole positive technical aspect is the 14-day relative strength index, which stands at 27, suggesting oversold levels.
In premarket trading, Tesla stock fell 7.78% to $191.67, according to Benzinga Pro data.
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