While investors see long-term value in Tesla, traders are wary of Q4 earnings report

Ever since Tesla’s stock took a beating in 2016, investors and traders have kept a strict vigil on the stock prices. However, with the uncertainties of Donald Trump’s presidency, there are a lot of worries which are plaguing the car manufacturer’s investors.

With the Q4 results inching towards release, there is a lot of suspense on whether the company will be able to meet its over-ambitious targets. At this point in time, it’s very important for Tesla to ensure it meets its targets, since 2017 will be an arduous year for the company.

In the beginning of 2016, the TSLA stock was valued at $220, but it touched its lowest point in February, at $140.0. Given the volatility in the stock prices, there is a lot riding on how the company has performed in the last quarter of 2016.

For 2017, investors need to worry about which way the stock prices will plummet, keeping in mind the past history and the stock prices trending. Here’s a forecast for 2017; basis these points, the investors will have to decide on how to interpret the results of the company’s performance in the oncoming months.

  • Tesla Motors recently concluded the acquisition of SolarCity Corp. This acquisition will help Tesla save $150 million in 2017.
  • Tesla has ventured into a new line of business, which is based around the introduction of solar roof tiles. The success of this venture will have a heavy impact on the performance of the company in Q1 2017.
  • Model 3, Tesla’s first electric car, will see mass production in the year 2017. The main concern which is worrying investors is: Will the company be able to fulfill its initial order of 400,000, which can give the Tesla stock a much needed boost? Would the company be able to start production in the last half of 2017 and be able to meet its customers’ bookings?
  • This is not all; on the investment front, the company has decided to launch more stores, in order to expand its Supercharger network. The sales network will be majorly instrumental in driving the sales of the new electric car, Model 3.

The high amount of investments will have a heavy impact on the company’s financial structure, which might shift the stock price in either direction. Nevertheless, there are a lot of opportunities for binary traders, especially when it comes to trading in Tesla’s stock. An upward swing in the stock’s prices would mean big profits for the binary traders, which will definitely be a plus for the investors.

Binary Option trading platform AnyOption reported the stock prices at $244.25; investors and traders have sufficient options when it comes to investment in the company’s stock. Whether the trader decides to call or put is something which would need to be decided basis the current day’s option rate and expiry.

If trends are to be believed, there will be a lot of profitable opportunities which will be available to binary traders. With hope peeking through the clouds of gloom, there is a lot to look forward to with respect to Tesla’s performance in 2017.

 

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