Watch the TSLA stock price chart after tomorrow’s earnings report
You’re here (NASDAQ:TSLA) is no stranger to dominating headlines, and that’s especially true for its polarizing CEO Elon Musk. However, the next two days are sure to attract more attention. This morning, TSLA stock is making headlines as its Shanghai Gigafactory reportedly reopens for production. Additionally, the company is expected to announce its results on Wednesday.
As the factory restarts production, it will certainly look a little different than before. The Shanghai Gigafactory will operate in a “closed-loop system,” meaning employees will essentially live on-site.
Tesla will provide employees with sleeping bags, mattresses and provide three meals a day. Staff will also have to take a daily Covid-19 test for the first three days as well as temperature checks twice a day. Currently, the company has enough inventory for about two weeks of operation while using this schedule.
Tesla’s Gigafactory in Shanghai is the company’s most productive factory and has been closed since late March due to shutdowns. The reopening of the factory comes at a pivotal time, with the company releasing its results on Wednesday. Investors will be looking to see if the company is still on track for its target of delivering 1.4 million vehicles in 2022.
The recent closure of the Shanghai factory by Tesla, coupled with the opening of its factories in Texas and Germany, will certainly put pressure on its results. The lack of deliveries in Shanghai will weigh on current quarter revenues, while the opening of new factories will create a short-term drop in profits.
When it comes to the TSLA stock chart, there are some key levels to be aware of.
The stock is trading below its 10- and 21-day moving averages, but is finding support near $1,000. Now the bulls want to see a bullish reaction to earnings, putting the gap fill level back into play at $1,087. Above it opens the door for downtrend resistance and then its recent highs near $1,150.
On the downside, TSLA stock has key support located between $925 and $945. There he finds the 50% retracement, the 50-day moving average and a previous resistance level. If it fails, it opens the door to the 200 days, then the 61.8% retracement.
TSLA stock below all of these levels could put the 21-month moving average into play.
As of the date of publication, Bret Kenwell had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.