Tesla CEO and X owner Elon Musk speaks at the Tesla product reveal event in Los Angeles, California, USA, October 10, 2024.
Source: Tesla | youtube
tesla The company is scheduled to report its third quarter results after the close of regular trading on Wednesday.
Here’s what analysts expect:
- Earnings per share: 58 cents, according to LSEG consensus estimates.
- revenue: $25.37 billion, according to LSEG
Earlier this month, Tesla reported deliveries of 462,890 vehicles in the third quarter. Delivery is the closest approximation to Tesla’s reported sales. The company also said it produced 469,796 electric vehicles in the period ending Sept. 30.
Deliveries increased 6% year-over-year, but fell short of analysts’ expectations and continued to decline year-over-year for two consecutive quarters. Tesla is also offering a variety of discounts and incentives to boost sales of electric vehicles, which could continue to pressure margins.
The earnings report was released less than two weeks after the much-anticipated robotaxi event that left shareholders clamoring for more details, and about two weeks before the presidential election, which has been a significant part of CEO Elon Musk’s schedule recently. It is done. Musk has campaigned passionately for Republican candidate and former President Donald Trump.
A significant number of shareholders want to know how Musk’s pro-Trump activities affect Tesla and its stock price, according to questions submitted by investors through the online platform Say Technologies.
Musk spent tens of millions of dollars to bring Trump back to the White House. Even though the former president does not support the type of federal spending on EVs, charging infrastructure and environmental regulations that have benefited Tesla for years.
Musk also said at a recent event in Harrisburg, Pennsylvania that he believes many government agencies and regulations in the United States are ineffective and unnecessary.
“We really shouldn’t trust the government. We just shouldn’t,” he said. “Don’t trust the government, even if I’m in it.”
Meanwhile, Tesla faces increasing competitive pressure, especially in China, from companies like BYD and Geely and a new generation of automakers including Li Auto and Nio. In the United States, incumbent automakers Ford and General Motors have begun selling more electric vehicles, despite backtracking on prior electrification commitments.
“Tesla’s operating performance indicates that its EV gap with traditional OEMs is stagnant and narrowing compared to its Chinese peers,” analysts at Jefferies wrote in a note Tuesday. “Tesla is no longer constrained by its production capacity and faces two years of slowing growth as its core models age and it becomes difficult to reconcile variable and fixed costs.” Analysts recommend holding the stock.
Other investor questions submitted ahead of Wednesday’s call focused on the company’s progress developing dedicated robotaxis, self-driving software and humanoid robots. Shareholders also want details about the Cybertruck’s profitability and popularity.
Although the angular steel pickup suffered from quality issues, Tesla still sold more than 16,000 Cybertrucks in the U.S. in the third quarter, according to estimates from Kelley Blue Book.
Tesla has not released specific guidance for 2024, but executives have said they expect delivery growth this year to be lower than last year.
Tesla shares are down 13% so far this year, while Nasdaq is up 23%.
see: Tesla’s stock price fell due to Cybercab timing and cheaper model updates.
