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Big factories, big trucks and big Musk: Tesla Q4 earnings expectations

Big factories, big trucks and big Musk: Tesla Q4 earnings expectations


Big factories, big trucks and big Musk: Tesla Q4 earnings expectations

The electric-car maker is set to report earnings Wednesday after the market close, and analysts are expecting strong numbers

Tesla is set to report fourth-quarter earnings after the market close on Wednesday, and analysts are expecting the electric-car maker to post strong results.

Tesla has had a tumultuous few months, including the resignation of its chief technology officer, the firing of hundreds of workers and a production shortage of its Model 3 sedan. But despite those challenges, analysts are optimistic about the company’s fourth-quarter results.

Here’s what analysts are expecting:

  • Adjusted loss per share: $3.04
  • Revenue: $3.28 billion
  • Vehicle deliveries: 29,870 (25,860 Model 3 and 4,000 Model S and X)

Tesla has been working to ramp up production of the Model 3, which is seen as critical to the company’s long-term success. The company has been dealing with production bottlenecks, but analysts expect those issues to be resolved soon.

“We continue to believe that Tesla is on the cusp of resolving its production bottlenecks, which should allow the company to hit its target of producing 5,000 Model 3s per week by the end of Q1,” CFRA Research analyst Efraim Levy wrote in a note to clients.

Tesla has also been working on expanding its manufacturing capability. The company is building a giant factory in Shanghai, China, and it plans to break ground on another factory in Europe next year.

“The Gigafactory 3 in Shanghai is progressing quickly and is now likely to start production in 2019, a year ahead of schedule,” Levy said. “In addition, Tesla should break ground on its Gigafactory 4 in Europe in 2019 and start production in 2020.”

Analysts are also expecting Tesla to provide an update on its Semi truck, which is slated to go into production in 2019. The company has said that the Semi will be able to travel 500 miles on a single charge and will be cheaper to operate than a diesel truck.

“We expect an update on the Tesla Semi, which is scheduled to begin production in 2019,” Bernstein analyst Toni Sacconaghi wrote in a note to clients. “Tesla has promised that its Semi will be able to travel 500 miles on a single charge, and will be cheaper to operate than a diesel truck.”

Analysts will also be closely watching Tesla’s guidance for 2019. The company has said it plans to deliver between 360,000 and 400,000 vehicles this year, which would be a significant increase from the 2018 deliveries of 245,240.

Tesla has been facing increased competition from a number of well-established automakers, including General Motors, BMW and Mercedes-Benz. But analysts say Tesla is still the leader in the electric-car space.

“We believe that Tesla’s competitive position in EVs is unassailable in the near term, given its technology, brand, and head start in the market,” Sacconaghi said.

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