Name: Tesla Stock Drops Ahead of Earnings. Here’s Why.
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Tesla Stock Drops Ahead of Earnings. Here’s Why.

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Next:ShareThis copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.https://www.barrons.com/articles/tesla-stock-drops-ahead-of-earnings-heres-why-51603208283Stock in electric-vehicle pioneeris off because new-vehicle registration statistics look light. Shares might also be down because traders are adjusting positions ahead of which are due out Wednesday evening. Tesla shares (ticker: TSLA) fell 2.1% Tuesday to $421.94. They are now down 4% for the week. Theandby comparison, are down 1.2% and 1% for the week, respectively.Tuesday, Reuters Tesla registrations in California dropped 13% in the third quarter compared with 2019, according to , a firm that collects registration data. Third-quarter registrations collected by Cross-Sell showed 16,200 vehicles registered in the third quarter, better than the 9,800 registered in the pandemic-impacted second quarter but down from more than 18,000 cars registered in the third quarter of 2019. It’s a bit of bad news, but it isn’t that big a deal. Tesla already reported third-quarter delivery figures. The company delivered just under , a record amount and in line with Wall Street expectations. Shares are up about 2% since those numbers were released. What’s more, Cross-Sell data has shown stagnating California deliveries for several quarters. It hasn’t hurt overall deliveries or the stock. Tesla stock is up about 720% since California weakness first manifested itself in . It’s just as likely that Tesla shares are down ahead of earnings because of positioning. Traders often will take profits ahead of news—and Tesla earnings qualify as big news. The stock has moved about 10%, up or down, on average around its past five quarterly reports. Tesla shares are up by roughly one-third since the company last reported earnings on July 22. Tomorrow evening, analysts 55 cents in per-share earnings from $8.3 billion in sales. Looking ahead, Tesla needs enough EV demand, from California as well as the rest of the U.S., China, and Europe to digest its growing capacity. It should have enough capacity, at year end, to manufacture about 700,000 vehicles. Installed capacity is expected to hit about 1.3 million vehicles by the end of 2021. Capacity comes on at different points in the year. Wall Street expects Tesla to deliver 770,00 vehicles in 2021, up from roughly in 2020. Write to Al Root atCloseStock in electric-vehicle pioneer Tesla is off because California new-vehicle registration statistics look light.SENDAn error has occurred, please try again later.Thank youThis article has been sent toCopyright ©2020 Dow Jones &amp; Company, Inc. All Rights Reserved.Copyright ©2020 Dow Jones &amp; Company, Inc. All Rights ReservedThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.

Next:ShareThis copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com.https://www.barrons.com/articles/tesla-stock-drops-ahead-of-earnings-heres-why-51603208283Stock in electric-vehicle pioneeris off because new-vehicle registration statistics look light. Shares might also be down because traders are adjusting positions ahead of which are due out Wednesday evening. Tesla shares (ticker: TSLA) fell 2.1% Tuesday to $421.94. They are now down 4% for the week. Theandby...

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Tesla Stock Drops Ahead of Earnings. Here’s Why.

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