Tesla is about to hit an all-time low despite an amazing earnings report for this quarter I'll be breaking down exactly why in today's video so stay tuned welcome to trade daily where we break down all the best stock market news like And subscribe to keep up to date with the stock market and I really hope you enjoy this video [Music] Tesla stock slipped on Friday hitting lows not seen since November 2020 as continued weakness takes its toll on Tesla Bulls Tesla closed down over 1.5 percent dipping below 177 dollars


shortly after the opening bell for the week shares were down over 6.5 percent and a steep 50 percent year-to-date weakness in Tesla's shares follows news this week that Elon Musk has identified someone as a potential successor for his role as CEO at Tesla the Revelation emerged during a trial over musk's 55 billion dollars pay package awarded to him in 2018. last week more disclosures by musk of additional Tesla's share sales rattled investors as must continue to raise funds for his purchase of Twitter which


is now seen by analysts at a best of distraction for musk and at worst a larger Financial mistake news of musk's Tesla stock sale last week now bringing his total shares sold since announcing the deal to buy Twitter to nearly 19 billion dollars had wed wish analyst Dan Ives throw in the towel on the stock removing it from the firm's best ideas list and cutting its Target to 250 from 300 dollars Tesla's stop performance has also been hit recently by factors like a potential slowdown in China which musk admitted


maybe in the middle of a Slowdown as well concerns over demand weakening in U.S as well as larger macro concerns over the global economy new competition from the likes of traditional automakers like Volkswagen GM and Ford threatens the strong EV lead Tesla has in the US and Europe as for today Beyond fundamentals there is possibility of technical selling hitting shares as well Barons reports technicians like John roke of 22v research are advising to sell any rally to 200 and Katie Stockton a fairlead


research warns the stock needs to hit 207 to avoid a confirmed breakdown that would put next support near 180 dollars the deadline for Tesla to hit Stockton's 207 Mark was today and shares of Tesla have already dipped below her 180 support level after five days of testimony including three hours from Elon Musk a Delaware judge will now decide whether musk's 56 billion dollars pay package from Tesla Inc was justified by the company's explosive growth or undermined by a flawed process musk and


the Tesla director's name is defendants repeatedly testified that the package achieved what it set out to do deliver tenfold growth in the company's stock price enriching investors in musk we thought if we could pull this off if this plan was executed Tesla would be one of the most valuable technology companies Antonio gracious a Tesla board member from 2007 to 2021 told the Delaware Court of Chancery on Wednesday it was a great deal for shareholders the trial seeks to resolve claims by


shareholder Richard tornetta that the 2018 pay package was dictated by musk the world's richest person to subservient directors and approved by a vote of shareholders who were misled by Tesla the trial wrapped up on Friday as musk struggles to oversee a chaotic overhaul of Twitter Inc which he was forced to buy for four to four billion dollars in a separate legal battle before the same judge Chancellor Kathleen McCormick my sense is that even though it went all the way to trial a ruling is going to


favor Mr Muska said Eric Tully a professor at Columbia Law School who's followed the case it will be months before McCormick rules and her decision can be appealed to the Delaware Supreme Court during the week-long trial directors said the pay package was meant to ensure musk guided the electric vehicle maker through a critical phase when he could have focused on his rocket company SpaceX or tunneling Venture the boring coat musk told the board you wanted a huge package to finance his dream of travel


to Mars or as he testified to make life multi-planetary in order to ensure the long-term Survival Of Consciousness muscribed his efforts to push the company from the brink of failure in 2017 to exponential growth the amount of pain no words can express must testified on Wednesday gracious recall that musk celebrated his birthday in a factory conference room with a grocery store cake this was all hands on deck 24-7 brutal he told the court the package allows must to buy one percent of Tesla's stock at a deep


discount each time escalating performance and financial targets are met otherwise musk gets nothing Tesla has hit 11 of the 12 targets as its value ballooned briefly to more than one trillion dollars from 50 billion dollars fornetta once the plan was ended and the stock granted under the plan returned to Tesla much of the trial focused on the information provided to shareholders before they approve the plan tornetta's lawyers tried to show Tesla concealed that three targets of the package were likely to be quickly


met the plaintiff portrayed the directors as personal friends or business partners of musk who was the link to their wealth the directors tried to show they could hold the line against musk's demands but evidence of extracting concessions was limited to the best method for accounting for the stock grants and a requirement that must had a hold of stock for five years it wasn't a knockdown Dragon Affair Todd Marin testified about the pay talks in 2017 when he was General Counsel I said must is a unique CEO and his pay


reflects that he's like a Labrador Retriever he sees a ball and he runs after it you could almost make an argument they didn't pay him enough because he ran off after Twitter a month has gone by since the last earnings report for Tesla shares have lost about 11.6 percent in that time frame underperforming the S and P 500. while the recent negative Trend continue leading up to its next earnings release or does Tesla do for a breakout before we dive into how investors and analysts have reacted as of late let's take a


quick look at the most recent earnings report in order to get a better handle on the important catalysts Tesla reported third quarter 2020 to earnings of 1.05 dollars a share up from the year ago figure of 62 cents and surpassing the Zach's consensus estimate of 95 cents this marked an earnings beat for the company for the seventh time in a row higher than expected revenues from energy generation and storage and the services and other segments resulted in this outperformance our estimate for the


bottom line was 1.06 dollars a share total revenues came in at 21 billion dollars witnessing year-over-year growth of 56 however the Top Line live the consensus Mark of 22 billion dollars the company reported an overall gross margin of 25.1 percent for the reported quarter further the operating margin came in at 17.2 percent Tesla's production and delivery totaled 365 923 and 343 830 Vehicles reflecting a year-over-year jump of 54 and 42 percent respectively while deliveries hit a record a live the


consensus Mark of 354 950 vehicles our estimate for total deliveries was 349 931 units the model free slash y registered production and deliveries of 345 988 and 325 158 Vehicles marking year-over-year growth of 51 and 40 percent respectively production and delivery of the model S X totaled 19935 and 18 672 units respectively in the quarter under review total Automotive revenues of 18 billion dollars missed the consensus Mark of 19 billion dollars but jumped 55 year over year the figure also included 286


million dollars from the sale of regulatory credits for electric vehicles which rose three percent year-over-year Automotive gross profit came in at 5212 million which missed the consensus Mark of 5880 million Automotive gross margin came in at 27.9 percent Contracting 258 basis points from third quarter 2021. energy generation and storage revenues came in at 1117 million dollars in third quarter 2022 compared with the year ago quarters figure of 806 million dollars the figure beat the consensus Mark of


910 million dollars our estimate for the same was 870.4 million dollars services and other revenues were 1645 million dollars significantly increasing from 894 million a year ago the figure also topped the consensus Mark of 1 350 million dollars we had projected revenues from services and other segment to come around 1 275.4 million dollars operating expenses totaled 1694 million dollars in the reported quarter slightly up from 1656 million dollars incurred in the corresponding period of 2021. Tesla had


cash and cash equivalents of 21 107 million dollars as of sep 30 2022 compared with sixteen thousand ninety five million dollars on sep Thirty twenty Twenty One net cash provided by operating activities amounted to five thousand one hundred million dollars in third quarter 2022 jumping 62 percent year over year its capital expenditure totaled 1803 million dollars compared with 1 819 million dollars recorded in third quarter 2021 Tesla generated free cash flow of three thousand two hundred ninety seven


million dollars during the reported quarter rocketing 148 percent year over year long-term debt and finance leases net of current portion totaled two thousand nine to six million dollars down from 6438 million dollars on sep Thirty twenty Twenty One in the past month investors have witnessed an upward Trend in estimates for vision at this time Tesla has a great growth score of a though it is lagging a bit on the momentum score front with a B however the stock was allocated a grade of D on the value side putting it in the


bottom 40 percent for this investment strategy overall the stock has an aggregate vgm score of B if you aren't focused on one strategy this score is the one you should be interested in estimates have been broadly training upward for the stock and the magnitude of these revisions looks promising notably Tesla has a bright future ahead which is great news for anyone holding we expect an inline return from the stock in the next few months but some analysts expect even better runs for Tesla Kathy Wood of Arc investment makes


claim that Tesla will reach 1533 we break down all of our evidence in this video here foreign and with that we've come to the end of the video I'd like to give a huge shout out to anyone who's made it this far I hope you enjoyed the video I'd also like to make it clear that this is a news and entertainment video not investment advice you should always do your own research and speak to a financial advisor before making any Investments thank you all so much for your support don't forget to like And subscribe for


the chance to win up to twenty thousand dollars in Amazon gift cards and we'll see you in the next video foreign if you want more crazy trade news how about this video we did