 Welcome traders to another tick mill earnings season preview with me Patrick Manly before we jump into today's report. As always want to adhere to that risk disclaimer most pertinent today's presentation is the fact the views and opinions expressed by me are solely mine they're not indicative or representative of those held by tick mill UK or tick mill Europe limited. Okay, so today's report we are looking at EV automaker Tesla. Set to announce earnings after the close trade in New York today and we are looking for an EPS earnings will share 85 cents on revenue estimates of 23.62 billion so Elon Musk's automator followed up the delivery boost with another round of price cuts last week. But the more expensive model less and model X vehicles company has moved again with a fifth round of cuts that saw prices reduced in Europe, Israel and Singapore company sales have been boosted by the economic reopening in China. While lithium prices have also planned more than 57% year to date, and the company is obviously looking to make its cars more accessible in an increasingly competitive market for analysts and investors this is a pivotal earnings release for Tesla. And since they will get a first look at how these aggressive price cuts are actually affecting the bottom line of the business. Tesla is likely to cement its place as the top EV automaker but its stock price could suffer in the year ahead, as the strategy starts to drag on earnings. Recent rule changes on EV tax credits announced by the Treasury and the internal revenue service will add another headwind in the coming quarters. These changes were treated to an additional $7,500 discount on some of its models, due to credits passed on in the inflation reduction Act of 2022. The eligibility rules have now been tightened according to manufacturing and battery parts which Tesla said would affect the model Tesla shares have risen 150% year to date after nearly 68% plunge in 2022. In comparison the S&P consumer discretionary sector is up 13.6% year to date. The company is currently valued at a market cap of around 570 billion with a price to earnings ratio of 51 times earnings. The key metric for Tesla in the upcoming earnings release is likely to be the company's margins. Tesla has gross profit margins of 25.6% which is higher than other competitors such as Ford or General Motors, according to Whitecharts. The company also outperforms peers on EBIT margins with 17.08%. That gives Tesla some room for its price cuts to eat into profit margins but still see it come out ahead of its EV competitors. Let's take a look at some of the statistical trading patterns for Tesla around earnings releases. Tesla shares moved lower in the immediate aftermath of earnings 7 out of 12 previous reports. On average stocks moved down 0.7% in the first day of trading after the company reports earnings. Based on the previous 12 earnings releases Tesla is more likely to trade lower one day after earnings for an average loss of negative 1.3%. On average the stock has moved higher by 3.8% one week after earnings. Let's take a look at where we are from an analyst community perspective. 46 analysts giving stock ratings on Tesla last three months, 21 of those have Tesla as a strong buy, 3 as a buy, 17 as a hold, 4 as a strong sell and 1 as a sell. In terms of the price target range we have $85 on the downside, $320 on the upside and an average of $203. Let's take a look at the options and sentiment perspective. Investor sentiment going into the company's earnings release has 65% expecting an earnings beat. Stock has averaged a move of 5.2% in recent quarters post the earnings release that has been notable buying of 30,710 contracts of the 190 call expiring this Friday and in general options order flow sentiment has been bullish. So with that in mind let's pull up the charts and see if we can identify any near term trading opportunities. So from a technical perspective, looking at the four hour chart here we have this bullish advance of the lows seen in January of this year. And we're now in a corrective phase versus the 207 swing high, we have an equality objective $154, we also have monthly projected rain sport 158. Now, ideally, you can see here in the pre market we're trading 179 versus a 184 close yesterday. So what I'm anticipating is any pullbacks into this 154 160 area I'll be watching for bullish reversal patterns to engage on the long side, ultimately looking for a move back through the 207 to retest the year to date highs 217 we have a monthly projected range resistance of 219. Now the important level I'm watching on the weekly timeframe is this descending trend channel resistance that comes in at 229 230 area. Certainly, if I'm long at this stage from my target entry zone, I would definitely be locking in some profits or stock to secure profits. As I think this could be a key test for the stock is 229 230 on the upside. The alternative scenario is that we don't hold support at the 154. If that's the case, then we were going to start to think about a test of 137 and 120 on the downside. But for now, my preferred scenarios are pulled back into that 154 160 bullish reversal patterns in on the long side, looking for new year to date highs. As always, traders plan the trade, trade the plan, and most importantly, manage your risk until next time. Thanks very much.