Tesla (TSLA) Q3 2024 earnings report

Tesla is ready to report third-quarter earnings on Wednesday after the shut of standard buying and selling.

Here is what analysts predict:

• Earnings per share: 58 cents, in accordance with LSEG consensus estimates.
• Income: $25.37 billion, in accordance with LSEG

Earlier this month, Tesla reported third-quarter car deliveries of 462,890. Deliveries are the closest approximation to gross sales reported by Tesla. The corporate additionally mentioned it had produced 469,796 electrical autos within the interval ending Sept. 30.

Whereas deliveries elevated 6% from a 12 months earlier, they fell shy of analysts’ expectations and adopted two straight quarters of year-over-year declines. Tesla has additionally been providing an array of reductions and incentives to spur electrical car gross sales, which may proceed to emphasize margins.

The earnings report comes lower than two weeks after a much-anticipated robotaxi occasion that left shareholders wanting extra particulars, and lands about two weeks earlier than the presidential election, which has occupied a hefty a part of CEO Elon Musk’s schedule of late. Musk has been vociferously campaigning for Republican nominee and former President Donald Trump.

In line with questions submitted by traders through on-line platform Say Applied sciences, a big variety of shareholders wish to know the way Musk’s pro-Trump activism stands to impression Tesla and its inventory value.

Musk has spent tens of hundreds of thousands of {dollars} to get Trump again into the White Home, although the previous president does not help the forms of federal spending on EVs, charging infrastructure and environmental laws which have benefitted Tesla for years.

Musk additionally mentioned at a latest occasion in Harrisburg, Pennsylvania, that he views many authorities companies and laws within the U.S. as ineffective and pointless.

“We should always not belief the federal government, actually. We simply should not,” he mentioned. “Even when I am within the authorities, do not belief the federal government.”

In the meantime, Tesla is dealing with elevated aggressive strain, particularly in China, from firms like BYD and Geely, together with a brand new era of automakers, together with Li Auto and Nio. Within the U.S., legacy automakers Ford and Normal Motors are beginning to promote extra electrical autos, regardless of strolling again prior electrification commitments.

“Tesla’s working efficiency signifies that the EV hole with legacy OEMs is stagnating and shutting vs. Chinese language rivals,” analysts at Jefferies wrote in a word on Tuesday. “Tesla is not capability constrained and is dealing with 2 years of subdued development as core fashions age and scaling variable and stuck prices is difficult.” The analysts suggest holding the inventory.

Different investor questions submitted forward of Wednesday’s name give attention to the corporate’s progress creating its devoted robotaxis, self-driving software program and humanoid robots. Shareholders additionally need particulars in regards to the profitability and recognition of the Cybertruck.

The angular metal pickup has been plagued with high quality points, however Tesla nonetheless bought greater than 16,000 Cybertrucks within the U.S. within the third quarter in accordance with estimates from Kelley Blue Guide.

Tesla hasn’t issued particular steering for 2024, however executives have mentioned they anticipate a decrease supply development price this 12 months versus final.

Tesla shares are down 13% to date this 12 months, whereas the Nasdaq has gained 23%.

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