(CTN News) – Tesla is expected to disclose its financial results for the first quarter of the year immediately following the closing bell on Tuesday.

The earnings report that was previously released by the producer of electric vehicles has once again prompted investors to anticipate a substantial increase in the company’s stock price.

The pricing of options indicates that traders anticipate that Tesla (TSLA) stock will experience a fluctuation of approximately 9.3 percent in either direction in the days following the report’s release. Investors’ pricing of options is the foundation of this conviction.

Predictions made by speculators are one of the most critical components of this equation. The price of Tesla shares could potentially decline by as much as $263.82, reaching $218.92, in the event that a move of that magnitude occurs.

This is an option. The price was approximately 241 dollars at the conclusion of the trading session on Thursday.

Since Tesla’s inception, volatility has been constant.

This has been the case for the duration of its existence. On the day following the release of profits, the company’s stock experienced an average daily movement of 12.3% over the past four quarters.

This fluctuation transpired on four separate occasions. These trends have been observed in the corporation’s shares. The shares experienced a decline of over twelve percent in the quarter following the company’s profit announcement in October of the previous year.

This event transpired subsequent to the organization’s publication of its results statement, which yielded a share price increase exceeding 22%.

Investors are positioning themselves for earnings season, which is distinguished by its inherent unpredictability. Although President Trump has implemented substantial tariffs on Chinese goods, he has also issued statements that contradict one another, suggesting that he is amenable to exemptions.

This is the situation that has arisen, despite the fact that the preponderance of the responsibilities that he initially stated earlier this month have been placed on hold.

Nevertheless, he has continued to impose substantial tariffs on products that are imported from China. Some analysts are cautioning that the harm caused by tariffs will soon become apparent, despite the fact that the economy’s statistics have remained robust. This is despite the fact that the data has remained consistent.

Specialists from JPMorgan have stated that the options market is purportedly pricing in some of the largest average projected variations surrounding earnings since the first quarter of 2020. These fluctuations have been ongoing since the commencement of 2020.

Tesla has been making these modifications since 2020.

Elon Musk, the Chief Executive Officer of Tesla, has been lending his financial and vocal support to movements that are regarded as belonging to the extreme right of the political spectrum worldwide. Tesla has observed a decrease in sales worldwide, and this decline can be directly attributed to the responses of consumers.

However, a number of investors and experts have expressed their concern that Musk’s involvement with the White House is resulting in him becoming disengaged from his leadership of his companies. These individuals believe that Musk’s relationship with the White House is the primary cause of this.

Tesla’s capacity to penetrate markets worldwide during this period serves as a potential bargaining tool for other nations that are currently in the process of negotiating trade agreements with their president. This accomplishment is attributable to Tesla’s capacity to enter a wide range of markets worldwide.

Tesla’s stock nearly doubled in the month and a half that followed the election. This was the result of Musk’s endorsement of Trump’s reelection. Musk played a substantial influence in Trump’s victory.

Mr. Musk was an advocate for Donald Trump during his presidential campaign. The price has returned to the level it was at on the day of the election, as it has decreased by nearly fifty percent since that time.

SOURCE: IPN