Is Now Right Time to Buy Tesla Inc (NASDAQ:TSLA)?

Tesla_Model_S
Photo: Model S/Creative Commons

Shares of Tesla Inc (NASDAQ:TSLA) were up nearly 4% on Monday. The electric car maker and energy giant is set to release its earnings report on Wednesday. The stock has surged around 18% during the last 30 days.

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According to TradingAnalysis.com analyst Todd Gordon, it is now a good time to buy TSLA. The analyst believes that “the stock’s record-setting run isn’t” over yet, CNBC reported.

Talking in on CNBC’s “Trading Nation” on Monday, Gordon said: “I really like how the stock’s acting into earnings.”

“Looks like if earnings do come out as expected, which is quite strong, you could be moving up towards the upper end around $330 in Tesla,” Gordon added.

Tesla Earnings: What to Expect

Tesla will report its first-quarter 2017 earnings after the market close on Wednesday. Wall Street expects $0 profit but strong revenue growth in the quarter.

The consensus revenue estimate is $2.5 billion for the quarter. This compares to around $2.3 billion in the last quarter and about $1.6 billion in the first quarter of 2016.

The company, led by billionaire Elon Musk, is expected to post a loss of 16 cents per share for the first quarter. This is not surprising as Tesla is investing heavily on Model 3 production, its charging network, and massive battery factory in Sparks, Nev.

For the first quarter, the biggest thing for shareholders and analysts will be the Model 3 production update. Tesla has promised to deliver around 80,000 Model 3 vehicles in 2017. The car maker is preparing to start production of the Model 3 in July, with a goal of 500,000 cars a year by 2018.

Tesla CEO Musk had said that the Model 3 could generate around $20 billion per year in revenue, with an annual profit of $5 billion.

Last month, Tesla reported that it delivered over 25,000 vehicles in the first quarter, versus Wall Street estimates of about 24,200.

So far this year, Tesla Inc (NASDAQ:TSLA) is up nearly 53%. The stock has surged over 34% during the last 12 months.

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