Earnings day has arrived for Tesla Inc. with EV maker and stock price under cloud.
The EV maker is expected to report fourth-quarter results on Jan. 25 after the bell. A conference call with analysts and others is scheduled for 5:30 PM ET.
As start-up EV makers and legacy automakers broaden their electric vehicle offerings, they announced price cuts in the U.S. and Europe in early January to gain or retain market share and heat up demand. .
The move also means some Tesla vehicles will be eligible for tax cuts, hurting profit margins and revenue.
“Price cuts have a big impact on[Tesla’s]economy,” Bernstein’s Toni Sacconaghi said in a recent memo, cutting its 2023 earnings-per-share forecast to $3.80 from near-consensus $4.96.
For Sacconaghi, Tesla may have miscalculated.
The Cybertruck’s arrival will help Tesla in 2024, but “Tesla’s main challenge is the need for more low-cost We don’t think the will ship in high volumes, and the time will come when Tesla faces even more EV competition,” said the analyst.
Tesla says the Cybertruck, a futuristic-looking, all-electric pickup truck, will go into production in mid-2023. Investors are looking for updates on that timeline.
“Tesla’s obvious key miscalculation was the belief that the Model 3 and Model Y combined could sell three to four million units a year.” This is enough to keep him growing until 2024 until models come along.
Deutsche Bank’s Emmanuel Rosner had a different take on the price cut.
Rather than an action that puts pressure on margins and earnings, “this is probably a bold aggressive move that will secure Tesla’s sales volume growth, put its traditional and EV competitors in trouble, and help Tesla We think it shows considerable pricing power and cost advantage,” Rosner said.
Here’s what to expect:
Earnings: Analysts surveyed by FactSet expect Tesla to report adjusted earnings of $1.15 per share in the fourth quarter. This compares to his adjusted earnings of 85 cents per share in the fourth quarter of 2022.
Estimize, a crowdsourcing platform that collects quotes from Wall Street analysts as well as buy-side analysts, fund managers, executives, academics and more, sees Tesla’s adjusted earnings hit $1.23 per share I expect it to be.
Earnings: Analysts surveyed by FactSet expect Tesla to generate $24.96 billion in revenue, compared to $17.72 billion in the fourth quarter of 2022.
Stock price: Tesla shares have been hovering near two-year lows for the past few months, dipping below $200 in early November. Over the past 12 months, stocks have fallen 63%, while the S&P 500 index has fallen about 14%. SPX,
What else to expect: Tesla’s China chief executive, Tom Chu, reportedly oversaw North American and European sales, as well as a factory in the United States. Tesla has not yet officially announced his new role.
Tesla’s management has been relatively stable over the past two years, including the departure of Chief Technology Officer JB Straubel in July 2019, following a spate of departures in 2018 and 2019.
CEO Elon Musk said in mid-December that he would resign from Twitter Inc. as soon as he found “someone stupid enough to take the job,” but there are signs that a successor is in the wings for now. is not seen.
Musk bought the social media company in October, overseeing months of turmoil and job cuts, selling millions of dollars in Tesla stock to fund the deal.
Major Tesla investors, including those hoping to serve on Tesla’s board of directors, begged Musk to focus on Tesla and try to stem the stock’s losses.
Investors are also eyeing Tesla’s 2023 guidance. For most of last year, the EV maker maintained his official guidance of 50% average annual sales growth.
Tesla reported in early January that it will have 1.31 million cars in 2022, an increase of about 40% from 2021.