Tesla got hit with a 7% drop this week; the real test comes next Wednesday
It closed at $354.72 this week, down 7.3% in 5 days and drifting further from its 52-week high of $498
The most dramatic moment on Friday: Tesla unveiled the “flying” second-generation Roadster. The stock briefly rose 4.7% premarket, then gave back those gains after the opening bell and closed down 2.13%
The broader backdrop is that the entire AI sector is being put under scrutiny
Goldman Sachs data shows that hedge funds were net sellers of AI stocks for 5 consecutive days from October 8–14, wiping out in a single week all their cumulative net buying since the start of 2025
The Nasdaq fell 5.5% for the week, chip stocks fell for 8 straight days—the longest streak since 2008—and CoreWeave dropped 25% for the week, with its five-year probability of default priced at 63%
Tesla reports Q3 earnings after the market closes on October 21 (the morning of the 22nd Beijing time)
Q3 deliveries hit a record 486,000 vehicles, but don’t forget that after its July earnings report, the stock plunged 14% in a single day—strong deliveries don’t necessarily mean a strong stock price
This time, the market is focused not on car sales, but on the pace of AI spending and free cash flow
My take: Before the earnings report comes out, Tesla will most likely continue to grind alongside the AI sector. I wouldn’t chase a rebound or try to call a bottom—just watching
Invalidation: If the earnings call lays out a clear path to profit recovery in 2027, and the stock rises more than 5% after hours, that would show the market is buying the story, and this view is no longer valid
Are you planning to wait for earnings before deciding which way it’s headed, or do you think a 7% drop has already created a sufficient margin of safety?
$TSLA $NVDA $META
#特斯拉 #USStockEarningsSeason
This is not investment advice. DYOR; trading involves risk.
It closed at $354.72 this week, down 7.3% in 5 days and drifting further from its 52-week high of $498
The most dramatic moment on Friday: Tesla unveiled the “flying” second-generation Roadster. The stock briefly rose 4.7% premarket, then gave back those gains after the opening bell and closed down 2.13%
The broader backdrop is that the entire AI sector is being put under scrutiny
Goldman Sachs data shows that hedge funds were net sellers of AI stocks for 5 consecutive days from October 8–14, wiping out in a single week all their cumulative net buying since the start of 2025
The Nasdaq fell 5.5% for the week, chip stocks fell for 8 straight days—the longest streak since 2008—and CoreWeave dropped 25% for the week, with its five-year probability of default priced at 63%
Tesla reports Q3 earnings after the market closes on October 21 (the morning of the 22nd Beijing time)
Q3 deliveries hit a record 486,000 vehicles, but don’t forget that after its July earnings report, the stock plunged 14% in a single day—strong deliveries don’t necessarily mean a strong stock price
This time, the market is focused not on car sales, but on the pace of AI spending and free cash flow
My take: Before the earnings report comes out, Tesla will most likely continue to grind alongside the AI sector. I wouldn’t chase a rebound or try to call a bottom—just watching
Invalidation: If the earnings call lays out a clear path to profit recovery in 2027, and the stock rises more than 5% after hours, that would show the market is buying the story, and this view is no longer valid
Are you planning to wait for earnings before deciding which way it’s headed, or do you think a 7% drop has already created a sufficient margin of safety?
$TSLA $NVDA $META
#特斯拉 #USStockEarningsSeason
This is not investment advice. DYOR; trading involves risk.