US Market

Tesla $TSLA: Why I’m Waiting To Buy Despite The Earnings Beat

Calvin Lo

Tesla (TSLA) closed up close to +10% the day after reporting Q2 2022 earnings, which came as a surprise to me considering the lacklustre response in after hours immediately after earnings release. Seems like many investors/analysts turned more optimistic after digging deeper and digesting the results a bit more.

See my previous post for my thoughts on Tesla’s Q2 earnings here.

See my investment thesis for Tesla here.

Source: Google

Zooming out, over the past year TSLA stock has been on a downtrend but has a chance to reverse into an uptrend. There have been mini-rallies (or bear market rallies) along the way down but all have fizzled out so far. I think this one might be the same especially if macro fears flare up again. At the moment, the macro environment is still cloudy at best with no signs of sunlight shining through yet.

Source: Google

That’s not saying I’m bearish on TSLA, maybe only in the short term with all the macro uncertainties. However, what’s clearer to me from earnings is that Tesla’s underlying business and fundamentals are still strong (as strong as can be reasonably expected with all the sh*t going on). I think Tesla will continue to find solutions to the hardest problems facing mankind including electrification, autonomous driving, AI/robotics or at worst drive the industry to do so. Supply chain is just another problem in which the best problem solvers will prevail.

Personally, I’ve been buying quite a bit of TSLA stock over the past few weeks so I might slow it down a bit since I don’t have much faith in this rally in the coming weeks. My last buy was in early July so I’m trying to wait at least a month before buying more. I was hoping TSLA will drop into the $550-$600 range to ‘back up the truck’, but that seems to be out of play in the immediate future. So, I’ll just default back to a monthly dollar-cost-averaging strategy until I run out of cash.

Source: moomoo app

As usual, opinions from Tesla Daily (Rob Maurer) and Dave Lee on Tesla earnings are a must-watch/listen for TSLA investors. Motley Fool Money podcast also covered it. Linking those here below (for my own future reference too).

Subscribers Drive Spotify and Disney – Motley Fool Money

It’s that magical time of year before the holidays where you still have time to catch up on retirement contributions for 2024 and get yourself ready for the new year ahead.  (00:15) Andy Cross and Matt Argersinger discuss: – Disney’s newfound strength at the box office and in streaming, Spotify’s subscription strength and advertising opportunity, and Shopify’s return to its winning ways.  – Why Cava and Instacart are both taking a breather post-earnings  – How the macro environment and housing market continues to weigh on activity for Home Depot. (19:04) Robert Brokamp runs through the key numbers investors need to know for their 401ks and IRAs for 2025 and the outlook for taxes and Social Security. (34:35) Andy and Matt break down two stocks on their radar: Nike and Papa John’s. Learn more about the Range Rover Sport at www.landroverusa.com and Get 15% off the Amazfit T-Rex 3 at us.amazefit.com/Fool Stocks discussed: DIS, SPOT, SHOP, CAVA, CART, HD, NKE, PZZA Host: Dylan Lewis Guests: Andy Cross, Matt Argersinger, Robert Brokamp Engineers: Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices
  1. Subscribers Drive Spotify and Disney
  2. Is ESPN Undisruptable?
  3. 1 Restaurant = $51 Million
  4. Shopify’s Comeback Story
  5. The Antidote to Euphoria? Normal.

Are you bullish or bearish on Tesla after Q2 2022 earnings?

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