Tesla Q3 Preview: Is The EV Story Over? These Are 3 Key Areas For Investors To Watch

Benzinga

Third-quarter earnings from Tesla (NASDAQ:TSLA) after the market close Wednesday could serve as a bellwether for the electric vehicle sector and overall technology sector. Here are the earnings estimates from analysts, what experts are saying ahead of the report and the key items to watch.

Transcript

00:00let's take a look at tesla here with the earnings upcoming we're going to do a little bit of a

00:03preview for that this is where the chart finds itself i guess is the right way to say that

00:08had a nice move up and then we're in this 417 to 430 area for a little bit it actually looks like

00:15that area acted as support again good news here is that we recaptured the 20 day and now it looks

00:21like we're trying to trade a little bit higher so we'll see if we can get above 450 that's going to

00:25be the first stop then 470 up here we'll see where the earnings actually takes us let's take a look at

00:31the earnings preview here third quarter earnings from tesla are after the market close on wednesday

00:38could serve as a bellwether for the electric vehicle sector and overall technology sector

00:42as the first magnificent seven stock to report this earnings season here are the estimates to

00:48watch analysts expect tesla to report third quarter revenue of 26.16 billion that's going to be up from

00:5425.18 billion last year's third quarter that's according to benzinga pro the company has missed

01:00analyst estimates for revenue in four straight quarters and missed estimates in seven of the last

01:0610 quarters overall analysts expect tesla to report third quarter earnings per share of 53 cents that's

01:12down from 72 cents per share in last year's third quarter the company has missed analyst estimates

01:18for earnings per share in three straight quarters and missed estimates for seven of the overall

01:22last ten tesla beating third delivery estimates which have already been announced was due to a push

01:28forward effect canter fitzgerald analyst andres shepherd said in a new investor note the analyst who

01:34maintained an overweight rating and a 355 price target said increased demand came from the expiration of

01:41the seven thousand five hundred dollar ev tax credit shepherd said he expects a weaker fourth quarter for

01:46deliveries uh first of all i want there were we actually had this discussion when we got that

01:51news there were a number of you that said exactly this was going to happen you said that there was

01:55going to be a kind of a pull through on some of this as they try to buy more of these prior to the tax credit

02:01um expiring pat yourself on the back the analyst said key catalysts for tesla to watch for the earnings

02:07call include robo taxis the ramp up of lower cost models which really didn't seem to hit amongst the

02:12public full self-driving adoption and the launch of the cyber cab in an update on optimus bot remember

02:18there's been a lot of talk about uh optimus and the robots uh really kind of holding the revenue

02:25higher going to be a majority of tesla's revenue in the future i would expect there to be a lot of

02:30color and talk about that on all of these earnings calls going forward here wet bush analyst dana ives

02:36is looking beyond electric vehicle demand and tesla's earnings and commentary and focused on key areas

02:41like robo taxis artificial intelligence in china quote after a brutal few quarters we are finally

02:47starting to see stable demand trends for tesla end quote the analyst has maintained in outperform

02:54rating with a 600 price target quote the tesla story going forward is around ai transformation being led

03:00by the autonomous and robotics initiatives end quote with some analysts uh while some analysts are bullish

03:07on the newer lower cost model y and model three variants goldman sachs analyst mark delaney said

03:13that they may not be cheap enough or have enough features to catch initial demand remember when we

03:18first talked about this the model uh three the cheaper model the model three we talked about them

03:24they literally just covered the sunroof with carpet or with the uh headliner and so it's still there

03:31they just covered it seems odd um uh the analyst stated that at one point tesla had planned to

03:38introduce a new model that would cost 50 less than the model three in the model y however instead

03:44consumers are getting variants delaney said the new lower cost models promised were a key item from

03:50tesla's 2023 investor day freedom capital markets and chief strategist jay woods said the earnings report

03:57will play a key in the story of tesla moving forward one that could shift away from electric vehicles

04:03quote the focus may shift away from auto sales and more about robotics autonomous driving and ai end

04:10quote wood said that this is the first quarterly report from tesla since the nearly one trillion dollar

04:16pay package for ceo elon musk was revealed the plan sees musk take no salary and receive compensation

04:23based on hitting milestones quote investors will get their first look as to how the company

04:29are progressing on these goals when they report wednesday afternoon uh we'll see if uh elon's happy

04:38on the call maybe he's a little bit prickly if he's not making some of these milestones that's

04:43that would be my guess if you're not taking a salary it's going to be really imperative that

04:46you hit those milestones that's just me though tesla previously reported third quarter deliveries of

04:51497 099 a new company record the company also reported third quarter production of 447 450 vehicles

05:02while third quarter figures reported attention likely turns to commentary on fourth quarter demand

05:07and expectations with the expiration of the federal ev tax credit as a major headwind declining demand for

05:14the cyber truck could also prompt questions about tesla's plans for the vehicle's future the company

05:19stated that the tesla semi and cyber truck were both planned for volume production in 2026 as mentioned

05:25in the second quarter results analysts and investors will be scrutinizing vehicle timelines to determine

05:30if that remains the case tesla's second quarter featured commentary on ai and robotics but this one

05:37could go even further as the company looks uh to these areas for future growth so uh i would definitely

05:44like to know if any of you are trading tesla for the print i understand if you think maybe it's just a

05:50little too um a little too volatile you'd rather see the print itself curious though if any of you are

05:56are taking a trade uh on on any of this

06:07you

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