Tesla (NASDAQ:TSLA) earnings: What to watch

Analysts expect soaring profits and investors are hoping for big guidance. Can the electric-car company deliver?
The post Tesla (NASDAQ:TSLA) earnings: What to watch appeared first on Motley Fool Australia. –

This article was originally published on All figures quoted in US dollars unless otherwise stated.

Tesla stock represented by four tesla electric vehicles parked against mountain backdrop

This article was originally published on All figures quoted in US dollars unless otherwise stated.

It’s been a wild year for Tesla Inc (NASDAQ: TSLA) shareholders. The stock is up more than 400% year to date. Over the past year, shares are up nearly 800%.

While the growth stock’s big gain recently is great for shareholders, it means expectations are high going into the electric-car company’s third-quarter earnings report this week. Ahead of the quarterly update on Oct. 21, here’s a preview of some of the key areas investors may want to check on. 


Sharp revenue growth for Q3 is pretty much already in the bag. A few days after the quarter ended, Tesla said it delivered record quarterly deliveries during the period, with total deliveries rising 43% year over year.

The bigger question about Tesla’s financials during the quarter is regarding the company’s profitability. Analyst estimates for the automaker’s earnings per share (EPS) for the period span a wide range, with the lowest estimate calling for $0.23 per share and the highest for $0.98. The average estimate is notably $0.56, which translates to a 51% jump compared to the year-ago quarter. 

Factory construction progress

Investors will also look to Tesla’s quarterly shareholder presentation to get a progress update on the company’s ongoing expansion efforts. In Q2, Tesla said it had an annual production capacity at its factory in Fremont, California of 400,000 units for Model 3 and Model Y combined. But management said that this installed capacity would extend to 500,000 units at some point in 2020. Did Tesla achieve this before Q4 started?

Further, Tesla said it was building Model Y production capacity at its factories in Shanghai and Berlin. Look to see whether the automaker completed construction on these important production lines. 

Guidance for vehicle deliveries

Finally, investors will want to see whether Tesla is maintaining its guidance for 500,000 deliveries this year. To deliver 500,000 vehicles in 2020, Tesla would need to deliver more than 181,000 vehicles in Q4 alone. This would imply huge growth both year over year and sequentially, as Tesla delivered about 112,000 and 139,000 vehicles in the fourth quarter of 2019 and the third quarter of 2020, respectively.

Regarding vehicle delivery guidance, investors should also look to see if Tesla provides any commentary on demand for its vehicles. Did Tesla exit Q3 with a record backlog of vehicle orders? Without record orders, Tesla may not maintain full confidence from investors in the company’s growth story.

Tesla reports its third-quarter results after market close on Wednesday.

This article was originally published on All figures quoted in US dollars unless otherwise stated.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Tesla (NASDAQ:TSLA) earnings: What to watch appeared first on Motley Fool Australia.

This article was originally published on All figures quoted in US dollars unless otherwise stated.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!