Tesla's stock always makes for an interesting play whether it's on the watch list of the long-term investor or the short-term trader. Speaking to the latter, forthcoming earnings reports should make the electric carmaker an intriguing play.
"Investors will be hoping for strength from Tesla as it approaches its next earnings release," a Yahoo Finance report said. "In that report, analysts expect Tesla to post earnings of $0.92 per share. This would mark year-over-year growth of 48.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.94 billion, up 66.73% from the year-ago period."
Tesla is also an ideal play for the long-term investor when it comes to looking for opportunities that could potentially weather a recession. While inflation fears have racked the tech sector, Tesla has remained resilient in turbulent times.
"Thanks to a flurry of headwinds such as rising interest rates, soaring inflation, supply chain woes, and geopolitical turmoil, tech giants Amazon and Microsoft have lost 27.9% and 17.7% of their value, respectively, since September of 2021," a Motley Fool report observed. "Meanwhile, Tesla, which is largely subject to these exact same macroeconomic pressures, has netted shareholders a respectable 22% gain over this same period."
2 Options to Trade Tesla
Traders don't have to pay over $300 per share in order to get tactical exposure to Tesla stock. Single-stock exchange traded funds (ETFs) like those from Direxion Investments offer that level of exposure plus added leverage at a fraction of Tesla's stock price.
Tesla stock is a favorite for traders given its high volume and thus its liquidity. As such, it’s also an opportune time for Direxion Investments to bring the Direxion Daily TSLA Bull 1.5X Shares (TSLL) and the Direxion Daily TSLA Bear 1X Shares (TSLS) to the ETF market.
"Well, we've got Robinhood though, releasing its top holdings and the newly found Robinhood investors Index," said Yahoo Finance's Rachelle Akuffo, speaking to the popularity of the stock among traders according to the trading platform company Robinhood. "And that tracks the 100 most popular holdings on that platform. Now, Tesla currently holds the top spot on the index."
As mentioned, the products are ideal for traders looking to get tactical exposure to Tesla stock in order to amplify gains when it comes to bullishness using TSLL. On the flip side, TSLS can be used when bearish notions take over a trader’s instincts or when market conditions warrant a change of tactical direction.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.