Tesla stock price prediction for May after Q1 revenue soared 74%

Shares of Tesla (NASDAQ: TSLA) have opened modestly lower today despite the EV company reporting better-than-expected profit and sales for Q1.

Fundamental analysis: Record income and deliveries

Elon Musk’s company earned $0.93 per share to easily top the $0.79 expectations from the market analysts. Similarly, sales were reported at $10.39 billion vs $10.29 billion expected. The company benefited from sales of regulatory credits and the positive impact from the Bitcoin investment. 

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“In Q1, we achieved our highest ever vehicle production and deliveries. This was in spite of multiple challenges, including seasonality, supply chain instability and the transition to the new Model S and Model X. Our GAAP net income reached $438M, and our non-GAAP net income surpassed $1B for the first time in our history,” the company said in a statement. 

On the closely-watched deliveries front, TSLA delivered 184,800 Model 3 and Model Y units to set a new quarterly record. The company seems to be on its way to hit its target of 750,000 units delivered in 2021.

“First deliveries of the new Model S should start very shortly, Model Y production rate in Shanghai continues to improve quickly and two new factories Berlin and Texas are making progress. There is a lot to be excited about in 2021.”

On supply chain issues, Tesla said that the environment is challenging and it expects to stay like this until Q4 this year. However, there are already minor signs of improvement in this space. 

Here you can check 6 key takeaways from Tesla’s Q1 report.

Technical analysis: Bar set too high

It seems that expectations set by investors are simply set too high as Tesla stock price fell in extended trading Monday despite record income reported, as well as a new record set for quarterly deliveries. 

It could be that shares fell as the profit was mainly driven by sales of regulatory credits and the positive impact from the Bitcoin investment. Nevertheless, the selloff accelerated into the New York open as Tesla share price is now down over 4%.

Even more concerning for investors looking to buy Tesla shares is the fact that the stock opened and has stayed below the 100-DMA. The price action now tests the $700 support level while ascending trend line comes in at $650.00.

As for the coming weeks, it is likely that the Tesla price action will be shaped by moves in the Treasury yields, with another surge in the 10-year benchmark rate could easily translate into a selloff below $650.

Summary

Tesla stock price has dipped today despite the EV company reporting stronger-than-expected Q1 results.