October is proving to be quite the rollercoaster month for Tesla (NASDAQ: TSLA).
Following the recent release of the third-quarter production and delivery stats, Tesla wowed audiences with its “We, Robot” event where they showcased advancements in self-driving technology and humanoid robots.
Keeping the momentum, Tesla is slated to unveil its third-quarter earnings report on October 23.
Let’s delve into the critical factors investors should keep in mind as the earnings day nears, and evaluate whether now is an opportune moment to consider investing in the company.
The Crucial Aspects to Watch in Tesla’s Upcoming Report
Key areas to monitor in Tesla’s third-quarter report include:
1. Updates on the lower-cost vehicle model;
2. News on Robotaxi and autonomous driving endeavors;
3. Any developments regarding Optimus and Tesla’s robotics vision.
Anticipating the earnings call, it is doubtful that Tesla will unveil significant new information, given that much of it was already shared during the Robotaxi event.
Image Source: Getty Images
Reflecting on Tesla’s Stock Performance Post-Earnings Reports
The price fluctuations of Tesla stock around previous earnings periods indicate heightened volatility, with shares surging pre-report only to decline post-report.
Gaining Perspective: A Historical Stock Performance Overview
Examining Tesla’s stock returns over different durations unveils a mixed picture:
| Metric | 1 Year | 3 Years | 5 Years | 10 Years | All Time |
|---|---|---|---|---|---|
| Tesla stock price return | (12.8%) | (18.9%) | 1,230% | 1,360% | 13,660% |
Data source: Ycharts.
Although the recent performance might have left some shareholders dissatisfied, macroeconomic trends, including receding inflation levels and a robust labor market, indicate positive prospects for Tesla in the near future.
Moreover, when observed through a longer lens, Tesla stock has metamorphosed into a significant multibagger over the years, showcasing its latent potential.
Considering the potential volatility around the upcoming earnings, investors must remember that market timing often results in suboptimal outcomes.
Exploring Investment Potential in Tesla
Whether it’s the allure of Tesla’s AI ambitions or its strategic positioning in the auto industry, prudent investors might deem Tesla stock a worthy addition to their portfolios, regardless of the looming earnings report.
Should you invest $1,000 in Tesla right now?
Before diving into Tesla’s stock, ponder this:
The Motley Fool Stock Advisor team recently identified ten stocks with extraordinary potential, and Tesla didn’t make the cut. These selected stocks are projected to yield substantial returns in the coming years.
Citing the example of Nvidia’s ascension in 2005, where an initial $1,000 investment could have blossomed into $845,679*, reinforces the transformative power of smart investment choices.
*Stock Advisor returns as of October 14, 2024
