Tesla Inc TSLA could address key topics like its sub-$30,000 vehicle, the rollout timeline for its robotaxi, and other pressing questions from investors and analysts when it reports its third-quarter financial results after market close Wednesday.
Earnings Estimates: Analysts expect Tesla to report third-quarter revenue of $25.37 billion, up from last year’s third quarter total of $23.35 billion, according to data from Benzinga Pro.
Tesla has beaten analyst estimates for revenue in five of the last 10 quarters, including the most recently reported second quarter.
Analysts expect Tesla to report third-quarter earnings per share of 58 cents per share, down from 66 cents in last year’s third quarter. The company has missed earnings per share estimates from analysts in four straight quarters, beating the Street estimates in five of the last 10 quarters overall.
What Experts Are Saying: Tesla will be one of the closest watched stocks during a busy week of earnings from several large companies and multiple component companies of the Dow Jones Industrial Average.
The electric vehicle company has traded down after six of its last eight earnings reports, according to Freedom Capital Markets Chief Global Strategist Jay Woods.
“It continues to be the one stock in the Magnificent 7 that has failed to ever recapture its all-time highs and remains 47% off those levels,” Woods wrote in a weekly newsletter.
With disappointments from the delay of the Cybertruck and the Robotaxi Day, Woods said Tesla shares could be trading based on new valuation metrics.
“The stock has been trading on more real numbers and results than anticipation of the next big thing.”
Woods said bulls want to see shares stay above recent highs of $265, which could put the worst performance in the “rearview mirror.” Bears want to see shares trade below the 200-day moving average and trade back down to recent lows around $182, Woods added.
“Traders need to buckle up. Despite a rather flat year, the price swings still make this one of the favorite stocks for the day and swing traders.”
Wedbush analyst Daniel Ives said the third-quarter earnings report could allow Tesla CEO Elon Musk to address topics not covered at the recent Robotaxi Day, including more details on the Cybercab strategy.
“While many investors left the Robotaxi Day clearly wanting more details on the broader autonomous and AI strategy at Tesla, we would expect Musk to address some of the timing/specifics around its FSD and Cybercab strategy on the conference call,” Ives said.
Ives reiterated an Outperform rating on Tesla with a $300 price target.
The analyst said Tesla could provide an update on the sub-$30k vehicle, which he expects to be released in mid-2025. Ives said the 1.8 million unit delivery estimate for Tesla in 2024 “remains hittable” after the third-quarter delivery figures.
Canaccord Genuity analyst George Gianarikas cautioned on lower margins in the third quarter, with Tesla using “aggressive packages” to help with demand.
The analyst has a Buy rating with a $254 price target on Tesla.
Jefferies analysts said the lack of details from Tesla’s Robotaxi Day could draw investors’ and analysts’ attention back to the company’s core operations.
The firm warned of “subdued growth” for Tesla over the next two years, with a potential struggle to update its lineup of vehicles.
Jefferies maintained a Neutral rating and raised the price target from $165 to $195.
Key Items to Watch: As the experts mentioned above, investors want answers on several items they didn’t get at Robotaxi Day, including a timeline for the Cybercar and an update on the sub $30k vehicle.
Other top questions for the earnings day include incorporating Grok into vehicles, an update on Roadster and Tesla Semi, and a shipping timeline for the Optimus Bot.
Margins will likely be a top-watched item during the earnings report as well.
Some will also monitor Tesla’s Bitcoin BTC/USD holdings. A report has linked the company’s Bitcoin holdings to being moved to new wallets, which could indicate the company is ready to sell its remaining holdings of the leading cryptocurrency.
Tesla’s financial statements show the value of its digital assets holdings each quarter.
TSLA Price Action: Tesla stock was down 0.4% to $217.97 on Tuesday, compared to a 52-week trading range of $138.80 to $271.00. It is down 12% year-to-date in 2024.
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