How to Trade Tesla After Q2 Performance

July 24, 2023 23:27

Tesla is a widely watched stock among investors. The electric vehicle maker reported its second-quarter 2023 earnings. Learn more about Tesla's second-quarter performance, what Elon Musk has in store for the company and what the analysts are forecasting for the stock.

Stock: Tesla Motors Inc
Symbol for Invest.MT5 Account: TSLA
Date of Idea: 24 July 2023
Time Line: 1 - 6 months
Entry Level: $301.00
Target Level: $350.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Tesla Q2 2023 Performance

Here are some of the key highlights from the latest second-quarter earnings report from Tesla: 

  • Earnings per share of 91 cents vs 82 cents expected 
  • Revenue of $24.93 billion vs $24.47 billion expected 
  • Net income up 20% from last year to $2.70 billion 
  • Operating income down 3% from last year to $2.40 billion 
  • 479,700 electric vehicles produced, higher than expectations 
  • Operating margin at 9.6% - the lowest for the last five quarters 
  • Targeting 1.8 million vehicle deliveries this year 
  • Expecting Q3 production will be lower 

While Tesla narrowly beat Wall Street expectations on earnings, revenue and electric vehicle production for the last quarter, the operating margin is at its lowest for the last five quarters with the total gross margin also at a low of 18.2%.  

Tesla explained that this is largely due to the fact more vehicles were sold through incentives and discounts resulting in a lower sales price and the cost of increasing production of battery cells which are designed in-house.  

However, revenue from its core auto business is up 46% year over year, as was revenue from its energy generation and storage division and services and other revenue division. While Tesla's Model Y vehicle became the best-selling vehicle in the world during the first quarter of the year, investors were keen to hear about the new Cybertruck. 

Unfortunately, Musk and his management team didn't provide any specifications for the Cybertruck or the start delivery dates for it. Instead, they focused on increased research and development costs to be at the forefront of AI with the production of its Dojo training computers.  

The pros and cons of the earnings report have led to a mixed response from analysts as highlighted by the overall ratings of the stock shown below. 

Tesla Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for a Tesla stock forecast in the past 3 months, there are currently 10 buy, 13 hold and 4 sell ratings on the stock. The highest price level for a Tesla stock forecast is $350.00 with the lowest price target at $120.00. 

The average price target for a Tesla stock forecast is $263.33.

Source: TipRanks, 24 July 2023


An Example Trading Idea for the Tesla Stock Price

An example trading idea for the Tesla share price could be as follows:  

  • Buy the stock on a break above the post earnings high at $301.00 to allow for volatility.
  • Target just below the highest analyst price target of $350.00.
  • Keep your risk small at a maximum of 5% of your total account.
  • Time Line = 1 – 6 months
  • If you buy 10 Tesla shares:
    • If target is reached = $490.00 potential profit [($350.00 - $301.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering that Tesla stock has already risen 118% this year so far.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Tesla stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall! 

How to Buy Tesla Stock in 4 Steps  

With Admirals, you can buy shares in companies like Tesla with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admirals to access the dashboard.   
  2. Click on Trade on one of your live or demo accounts to open the web platform.   
  3. Search for your stock in the search window at the top right to view the live price chart. 
  4. Click Create New Order from the bottom of the screen to open the trading ticket. 
Source: Admirals MetaTrader 5. Tesla. Monthly. Date: Jul 2016 to July 2023, captured on 24 July 2023. Past performance is not a reliable indicator of future results or future performance.


Click on the banner below to trade Tesla stock today! ▼▼▼ 

Do You See the Tesla Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.  

If you believe there is a higher chance Tesla's share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.  

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.  

This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article. 


The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:   

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.    
  • Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. 
  • With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest. 
  • The Analysis is prepared by an independent analyst, Jitanchandra Solanki (analyst), (hereinafter “Author”) based on their personal estimations.    
  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.    
  • Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. 
  • Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved. 
Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.