Tesla will release earnings after the market closes on Wednesday. Tesla's price has been rising recently, raising the bar for what investors expect and increasing the chances of stock volatility following earnings. Here's what to expect when Tesla releases its financial results, as well as some recent history.
Tesla is expected to make $1.67 per share on $13.9 bln according to Wall Street. Since the firm reported better-than-expected third-quarter vehicle deliveries, expectations have risen. Analysts predicted $1.45 per share earnings from $13.1 billion in revenues a month ago.
In the third quarter, Tesla delivered roughly 241,000 units, up from about 201,000 in the second quarter. Tesla announced $1.45 per share earnings in the second quarter on $12 billion in sales.
Analysts and investors will pay special attention to gross profit margins in the earnings announcement. During the third quarter, Tesla's Shanghai facility sold around 12,000 more cars in China. This should assist increase profit margins. Locally produced automobiles are more profitable. However, a global chip scarcity and rising transportation costs could eat into profit margins. For the time being, Wall Street anticipates gross profit margins to remain practically constant, with the second quarter's figure hovering around 24%.
Analysts and investors will want to know how the chip shortage is progressing and when relief might arrive during the earnings conference call, which begins at 5:30 p.m. eastern time. They'll also be interested in hearing about the ramp-up of new capacity in Germany and Texas, as well as the outlook for fourth-quarter and 2022 deliveries.