What to Expect from Tesla’s Earnings: Why Low Expectations Could Be a Positive Sign

Tesla (NASDAQ:) Reveals Q3 ’24 Financial Results: An Analysis

Tesla’s latest financial results for the third quarter of 2024 are out, and the numbers have sparked a buzz in the investment world. Let’s dive into the details and see what this means for the electric vehicle giant.

Key Numbers:

• Expected EPS: $0.58
• Expected Revenue: $25.37 billion
• Expected Operating Income: $1.9 billion

  The expectations are for a year-over-year growth of -12% for EPS and +9% for revenue. This would mark the first y-o-y operating income growth in six quarters for Tesla if the consensus number is met.

  Financial Performance:

• In the second quarter, Tesla saw a drop in revenue, operating income, and margins despite delivering more vehicles. The decline was attributed to lower average selling prices.
• The momentum in Tesla’s stock seems to have faded, with even RoboDay failing to impress analysts and investors. The full self-driving division, a key part of Tesla’s valuation, received underwhelming feedback.
• On a positive note, cybertruck sales exceeded expectations, contributing to an increase in the expected full-year 2024 revenue estimate.
• Energy storage revenue has doubled since December 2022, now accounting for 22% of total Tesla revenue.

  Chart Analysis:

• The upward-sloping trendline remains intact, with a definitive support level at $138. Breaking through $170 – $175 on heavy volume could signal a shift in the trend.

  Conclusion:

• The once-bullish sentiment surrounding Tesla has waned, with concerns about EPS and revenue estimates. The delayed rollout of the lower-end model and stagnant progress in the robo-car division have dampened investor enthusiasm.
• While Morningstar values the stock at $200, Tesla’s current trading multiples suggest it may be slightly overvalued.
• The challenges of battery technology and Elon Musk’s extensive commitments raise questions about the company’s future performance.

  Final Thoughts:

• Tesla’s upcoming earnings report will be closely watched to gauge the company’s trajectory.
• Investors should consider the risks and rewards before making any investment decisions in Tesla.

  This analysis provides a comprehensive overview of Tesla’s recent financial performance and the factors influencing its stock. It serves as a valuable resource for investors seeking insights into the company’s prospects and risks. Title: Unveiling the Secrets of Successful Investment Management

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