The US stock market in general and Tesla stock (NASDAQ: TSLA) in particular are up on Tuesday. This also marks a second consecutive green day for the US equities after a major correction. However, many analysts are still cautious about calling the current bounce a proper recovery rally.
A 40-point rise in the S&P 500 index showcases improved market sentiment after the benchmark index closed below the critical 5,000 threshold last week. Nevertheless, the index remains 3.9% down from its yearly peak, and more downside could be on the cards if the 4,920 support fails to hold.
The first quarter earnings of the biggest EV manufacturer are set to be released after the closing bell on 23 April. According to the market expectations, the innovative automaker could report a 14% decline in revenue on a YoY basis. This is due to the drop in sales and aggressive price cuts.
Tesla's Q1 earnings per share (EPS) is expected to come at $0.56, a 35% decrease from last year. However, there is still a chance of a major bounce in the price if the actual earnings come slightly better than expected.
According to the latest Tesla news, the Elon Musk-led company is eyeing 400 job cuts at its Gruenheide gigafactory in Germany. As per the Reuter report, the job cuts will be voluntary and not forced. The EV giant cited the weakening sales market as the reason behind the upcoming layoffs.
Recently, Tesla Inc. has introduced fresh price cuts on multiple models across different jurisdictions. This has intensified the price war in the global EV market as Li Autos has also joined the race.
Since the breakdown below the $180 support zone, NASDAQ: TSLA has been in a downward spiral. On Monday, the shares hit their fresh 52-week lows, signaling extreme weakness. Technical analysis presents a very bearish Tesla price prediction with the possibility of a retest of the $100 level in the coming months. However, this outlook can be avoided by reclaiming the $180 support.
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