Wall Street is upbeat about Tesla Inc. s quarterly earnings, slated for Wednesday after the bell, hoping that record sales and price increases will have offset higher costs related to supply-chain issues.
We expect Tesla's recent added delivery numbers and higher vehicle pricing to more than offset any e.g. costs from supply chain challenges. Mark Delaney of Goldman Sachs said in a recent note that chip shortages, higher freight costs and increased commodity costs were the main challenges during the quarter in the quarter.
Tesla will report from Austin, Texas, for the first time. Elon Musk announced last week that the company was moving headquarters to Palo Alto, Calif. even though it still plans to invest in and expand its Austin plant.
Tesla just had its annual shareholder meeting, and that might be the last investor to hear from Musk in a while.
At Tesla's meeting after the 2nd quarter results in late July Musk surprised Wall Street by saying he would not be on future Tesla earnings calls unless there is something interesting I need to say, he told analysts and others. If someone is active on Wednesday, he is unclear whether they are at the call?
Earnings: The FactSet consensus calls for Tesla to report adjusted earnings per share of $1.54 for the quarter. That would compare with adjusted earnings of 76 cents a share in the third quarter of 2020.
Estimize, a crowdsourcing platform that gathers estimates from Wall Street analysts as well as buy-side analysts, fund managers, company executives, academics and others, is expecting an adjusted profit of $1.78 a share for Tesla.
Revenue: Analysts polled by FactSet call for sales of $13.7 billion for Tesla, which would compare with $8.8 billion in the third quarter of 2020. The stock price: Tesla shares gained 18% this year, compared to gains of around 19% for the S&P 500 index. The stock has however outperformed the index by a large margin in the last three months: A 28% advance compared with 2% advance for the S&P.
Musk updates investors about the nanotech at the shareholder meeting, saying that the futuristic look all-electric pickup truck will enter production next year and hit volume production by 2023.
Musk described a constant struggle to get enough chips and other auto parts for the truck and other Tesla vehicles, saying that a respite for the worst shortages is likely by 2023.
New electric pickup truck is coming to market with new features. Investors will want to hear more details about that prediction and also learn how the current shortages continue to affect car manufacturer.
Sales in China are also on the top of the list of issue investors will want to get details from.
The company also had to compete with more competition from Chinese EV makers such as Nio Inc. NIO, Tesla Inc. and other automotive companies.
No more, says Dan Ives of Wedbush in his note earlier this week.
After softer China sales earlier this year, Tesla is showing massive demand momentum into an year-end with robust sales in the month of September in China and a clear positive for the bulls, he added. The dark clouds are in the rearview mirror, said Jeremy Ives.
The bump in sales for Musk Co. in China is a clear indicator of Tesla's green tide taking hold in China across the board, he said.