TSLA Set To Report Earnings: What Does Sharp Drop Mean
Tesla Motors Inc (NASDAQ: TSLA) is dropping over 5% on the day. The company is set to report earnings after the market closes today. In 2013, the stock has soared almost 500%, hitting an all time high on Monday of $145.73. So why today is the stock dropping sharply before earnings?
Speculation has to focus on institutional selling since the volume is huge. Could this be institutions selling as they believe the stock will disappoint and fall? With the stock being up so high, a pull back is likely. In addition, recently Goldman Sachs (NYSE: GS) gave Tesla a price target of $85 per share.
All of this points to institutions shorting and selling the stock ahead of earnings. They are expected to report a whisper number loss of $0.05 per share. Revenue will be key as well as future guidance. This will be fun to watch. Cheers!
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.