Tesla (TSLA) stock remains in focus as investors and analysts gear up for the company’s upcoming Q3 earnings report on October 22. Despite recent market volatility and high expectations, TSLA is heating up the options market ahead of its Q3 reveal. Traders are piling into bullish bets, hinting at growing confidence that Elon Musk’s EV giant could deliver surprises when results roll in. TSLA stock gained 1.38% on Thursday.
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For Q3, analysts expect Tesla to report earnings of $0.54 per share, down from $0.72 in the same period last year. The company achieved a record 497,099 vehicle deliveries globally in the quarter, and investor attention will focus on automotive profit margins and overall earnings performance.
Options Traders Signal Bullish Trend in TSLA Stock
TSLA stock closed around $435.15 on Wednesday, October 15. At the same time, options trading volume is about normal. However, there was some bullish activity in the options market as more people were buying call options compared to put options. Notably, the put/call ratio was 0.56, meaning there were almost twice as many calls as puts.
To simplify, calls are bets that the stock will rise, while puts bet it will fall.
Additionally, the options market is predicting there’s about a 50% chance the stock moves more than 6.8% after Tesla’s Q3 earnings report on October 22.
Morgan Stanley Remains Bullish on EVs, Cautious on Physical AI
Ahead of Q3 print, four-star-rated analyst Adam Jonas at Morgan Stanley reaffirmed his Buy rating on TSLA stock yesterday, signaling confidence in the company’s EV growth.
Overall, Jonas views Tesla as well-equipped to benefit from the rising global demand for sustainable transportation. His continuous reaffirmation of the Buy rating reflects Tesla’s leading position in the fast-growing EV sector and its strong growth potential.
Meanwhile, Jonas has long supported Tesla’s push into physical AI and robotics. In his latest note, he said Musk was early in spotting the potential of this field, with Tesla working on robotaxis for over ten years and the Optimus robot for nearly five. However, he believes that early advantage is shrinking, as all “Magnificent Seven” tech giants are now investing heavily in robotics, leading to intensifying competition.
Is Tesla Stock a Buy Now?
On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 16 Buys, 13 Holds, and nine Sells assigned in the last three months. The average Tesla stock price target is $365.88, suggesting a potential downside of 16% from the current level.
