Will Tesla Meet Expectations Again This Time... This Week Reconfirms Earnings and Policy Momentum

[Asia Economy Reporter Lee Seon-ae] The stock market is fluctuating around the 3200 level, attempting to break its previous high once again. External macro variables have stabilized, and above all, expectations for earnings are higher than ever. Last week, the KOSPI's estimated net income surpassed 140 trillion won and continues to be revised upward, exceeding 141 trillion won. Currently, the stock market is transitioning from a liquidity-driven phase to a fundamentals-driven phase focused on earnings, and the heightened expectations for earnings support a bullish outlook for the stock market. Accordingly, market attention is turning to Tesla, which is scheduled to announce its earnings this week. The earnings reports of U.S. tech stocks influence both the U.S. and domestic stock markets.

According to SK Securities on the 25th, several economic indicators will be released this week (25th?30th). In particular, next week’s focus should be on the first-quarter GDP of major countries and South Korea’s April export data. Due to base effects and the resumption of economic activities, the first-quarter GDP of major countries is expected to rise. Exports, which confirmed strong external demand in March, are also expected to continue a sharp year-on-year increase in April. If the export recovery momentum is reaffirmed, expectations for earnings will continue to rise. The April FOMC is also scheduled, but with the Biden administration’s stimulus measures and the bond market stabilizing, interest is expected to be lower than before.

Interest in climate change is expected to increase further. The People’s Bank of China has unusually declared support for green finance, and 40 countries participated in the climate change summit hosted by President Biden. In this context, Tesla’s earnings announcement is important. Tesla, known not only as an icon of climate change but also as a symbol of innovation and a leading stock in the current market, influences not only itself but also the overall tone of the stock market.

Han Dae-hoon, a researcher at SK Securities, stated, "Tesla’s first-quarter revenue is expected to be $10.74 billion, a 73.9% increase compared to the same period last year." He added, "So far, 87% of S&P 500 companies that have reported earnings have exceeded expectations. If Tesla joins this group, the optimism for the earnings season will increase. Next week will be a week to reaffirm momentum regarding earnings and policies."

Meanwhile, the earnings announcements of major U.S. tech companies are concentrated this week. Following Tesla on the 26th, Alphabet (Google’s parent company) and Microsoft will report on the 27th, Apple and Facebook on the 28th, and Amazon on the 29th.

This content was produced with the assistance of AI translation services.