Tesla Q3 2024 Earnings Preview: What You Need to Know

Tesla (NYSE: TSLA) is gearing up to release its Q3 2024 earnings report after market close on Wednesday. The electric vehicle giant has been facing challenges in meeting earnings per share (EPS) estimates this year, with the last quarter falling short by 8.7%. Analysts are now expecting an EPS of $0.46 for Q3, which would require a 26% positive surprise to surpass last year’s performance.

Analyst Expectations and Stock Performance

• EPS Forecast: $0.46
• Performance Comparison: Q3 2024 vs Q3 2023
• Stock Movement: Year-to-date down by 12.5%, post-tariff up by 28%

  As TSLA investors eagerly await the earnings release, the big question remains: should they expect a surge in stock price or be prepared for a downturn?

  Robotaxi Event Follow-Up: The Reality Check
  

  The recent robotaxi event on October 10th was touted as a game-changer for Tesla, with the promise of a shift towards full self-driving technology. However, the event failed to dispel uncertainties surrounding the feasibility and regulatory approval of the robotaxi service. This has raised concerns about the company’s ambitious valuation targets and the timeline for launching the service.

• Market Cap Projection: $5 trillion vs Current $690.5 billion
• Technical Challenges: FSD delays in China, regulatory hurdles

  Despite the hype, industry analysts have expressed skepticism about the event, citing a lack of concrete details and unresolved issues.

  Tesla’s Effort to Reduce Costs: Impact on Profitability
  

  To stay competitive in the EV market, Tesla needs to bring down costs while maintaining profitability. The company’s focus on affordability and mass production of robotaxis has led to speculation about the rumored "Model 2" vehicle. However, concerns are mounting about Tesla’s ability to sustain low margins and compete with other EV makers.

• Competition: Alphabet’s Waymo, Baidu’s Apollo RT6
• Gross Margin Trend: Upward trajectory vs Reversal in 2022

  Analysts predict a modest improvement in Tesla’s gross margins for the upcoming quarter, but the company’s long-term profitability outlook remains uncertain.

  Analyst Expectations and Price Targets
  

  As investors await the Q3 earnings report, analysts are closely watching Elon Musk’s outlook for Q4 and 2025. Expectations for a significant stock price movement hinge on Tesla’s ability to deliver strong results and address key challenges facing the company.

• Analyst Price Targets: $216.25 (WSJ) vs $209.48 (Nasdaq)
• Investor Sentiment: Years of delays and margin pressures have elevated expectations

  In conclusion, Tesla’s Q3 earnings report will be a critical juncture for the company as it navigates a challenging market environment and strives to meet investor expectations.

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  Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice. Readers are advised to conduct their own research and consult with a financial advisor before making investment decisions.*