Tesla: key events to watch in October

Tesla knows how to generate headlines and 2022 was no different. There was a Tesla stock split, ongoing disputes with Twitter, and CEO Elon Musk's many headline-grabbing hot takes. This October, Tesla is under the spotlight again ahead of three key events.

Tesla AI Day

At the company’s event of the year, Tesla AI day, Elon Musk revealed a prototype of a humanoid AI robot that he believed would be a fundamental transformation of civilization. While this robot is still some years away from hitting the market, the company is optimistic about its potential.

Despite Tesla’s enthusiasm, the share price did not reflect optimism for long-term investors.

Tesla’s key watch in October

Record deliveries: October 2nd, 2022 saw Tesla announce in a company statement that third-quarter deliveries rose to a record level after the previous quarter’s production-induced setback.

The Model 3 and Model Y continued to lead the production as soaring demand worldwide. Despite this, the market expectation of 364,660 deliveries was missed, selling 343,000 total deliveries instead.

The EV giant also reported selling another 343,830 cars in the third quarter. This represented a nearly 35% increase from the 254,695 units sold in the second quarter when the company suffered from production disruptions due to the COVID resurgence in China.

Twitter lawsuit

The bittersweet relationship between Elon Musk and Twitter is one of the most talked about corporate events of 2022.

Musk tweeted a poll in March asking whether users believed Twitter was protecting free speech. "Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?"

In a follow-up tweet, Musk announced he made an offer to buy Twitter as he believed Twitter needed to be privatized to achieve the goal.

However, three months later, Mr Musk announced that he would be walking away from his initial offer, prompting Twitter to sue him. This months-long argument over a $44 billion takeover deal will head to Delaware Chancery Court on October 17th, 2022.

Q3 earnings

Tesla will post its financial results for the third quarter of 2022 after the market closes on Wednesday, October 19, 2022. The expectation now is revenue for the third quarter will be around 22.68 billion, a 33% increase from Q2, and 64% up from the same quarter in 2021.

In addition, EPS is anticipated to be at around US$1.06, a 63% jump from Q2.

Tesla share price and technical analysis

As a start to the new and final quarter of the year, Tesla’s share price is heading toward the three-month-low level and further away from the previous ascending trendline. A breach-through at the March-low level at $233 is bringing the price to retest the region below $240. The double head pattern formed in the daily chart suggests a mid-term bearish development, which would bring the $232 level into view.

For the near-term prospect, given the lowest RSI print in four months, we might perhaps expect a rebound on the cards, although for this scenario we would see the resistance at play from the level of $253.

Tesla share price daily chart