EV Stock a Prime Selling Candidate Before Earnings

Elon Musk's Tesla Inc (NASDAQ:TSLA) was last seen down 1% at $388.50, just ahead of the company's first-quarter earnings report, slated for after the close tomorrow, April 22. Analysts are expecting profits between 21 and 36 cents per share, on revenue of $21.4 to $22.4 billion. 

The security has been struggling since being rejected at the descending 80-day moving average in the past two trading sessions. The shares remain 13.8% lower year to date, with added pressure stemming from the $400 level. 

In the past two years, TSLA has finished higher five times after reporting, including a 5.6% jump last April. The options market is pricing in 10.5% move for Wednesday's trading, slightly larger than the average 8.6% drop over the last two years.

Analysts have been split toward the equity. Heading into today, 26 of the 43 brokerages in coverage sport a "hold" or "strong sell" rating. This leaves ample room for bull notes, should this bearish sentiment begin to unwind after earnings.

The stock's Schaeffer's Volatility Scorecard (SVS) comes in at 9 out of 100, meaning shares have consistently realized lower volatility than its options have priced in over the past 12 months. In simpler terms, this makes Tesla stock a premium selling candidate.