Tesla Q4 Earnings Forecast • TechCrunch

Tesla’s fourth-quarter and full-year earnings for 2022 we bear with it, and with it expectations from Wall Street that the electric car maker will post quarterly revenue of $24.03 billion and adjusted earnings per share to be about $1.13, according to Yahoo Finance data. If Tesla reaches that revenue estimate, it will mark a record for the company, but also the slowest pace of growth since mid-2020.

As usual, Tesla will share its results Wednesday after the market closes, and management will discuss earnings and answer analyst questions during a webcast that will be held at 5:30 PM ET.

The automaker is closing in on what has been a tumultuous year The share price fell 65%. Due to factors ranging from CEO Elon Musk’s distraction on Twitter to fears of slowing sales in epidemic-hit China. Tesla is expected to address these concerns, as well as recently Car price reductions And No response to estimates for delivery in the fourth quarter of the yearduring the call tomorrow.

In fact, so much has happened over the past few months in Tesla-land that Dan Ives, managing director at Wedbush Securities, said: He said The hold and guidance on the upcoming earnings will be “one of the most significant moments in Tesla’s history and for Musk himself.”

Before we dive into our outlook on the call, let’s note that Tesla shares closed Tuesday at $143.89, up more than 30% since earlier this month after shedding two-thirds of their value as of April 2022.

appearance of musk

Musk doesn’t always join Tesla’s earnings calls — and he’s actually busy right now Defending himself in court because of allegations that he Fraudulent investors with his infamous 2018 “funding secured” tweet — but the CEO is expected to appear tomorrow, just to allay investor fears that he’s not giving Tesla enough of his attention since taking over Twitter.

The executive also went to trial in November to defend him Tesla wage package worth $56 billion After a shareholder sued to cancel the deal, which he said was unfairly given to Musk, the “part-time CEO.”

Missing delivery estimates

During Tesla’s third-quarter earnings call, Musk promised that Tesla would deliver an “epic end to the year.” The automaker posted record vehicle sales and deliveries, but still lost both its own and Wall Street’s estimates. Partially fed Last minute discounts To the Model Y and 3 vehicles in December, Tesla delivered 405,278 vehicles in the fourth quarter. The Street was expecting between 420,000 and 425,000 units to be delivered.

Analysts will likely question the company over its mistakes, as the fourth quarter marked the automaker’s third consecutive quarter They didn’t succeed To as many deliveries as promised. Tesla may be required to provide more realistic estimates for 2023.

We may also see updated delivery and sales numbers for the fourth quarter when earnings are released.

Margins of vehicle price reductions

earlier this month, Tesla lowered the price Long-range Model Y crossover (down 20% to $52,990) and Model 3 sedan (down 14% to $53,990) for US buyers. The vehicles’ new, lower base price qualifies them for a $7,500 federal tax credit under the Inflation Reduction Act (IRA), which was signed into law in August. Under the terms of the IRA, the minimum for electric sedans is $55,000 and for SUVs, vans and vans $80,000.

Tesla also lowered the prices of its Model S sedan and Model X, which are still too expensive to qualify for an electric vehicle tax credit.

The latest price cuts mark at least the fourth time the automaker has discounted its cars or offered credits in the past several months. Tesla announced price cuts in China by as much as 9% on the Model 3 and Model Y in October, which cut prices further by about 14% earlier this month. The company also first issued a $3,750 off for the Model Y and 3 in the US and Canada in early December, before hitting $7,500 later in the month.

Investors haven’t taken kindly to the price cuts, which they fear indicate a drop in demand for the popular electric vehicles. However, the price cuts seem to have actually boosted demand for the vehicles. What investors hope to measure is whether price cuts have significantly reduced Tesla’s margins. It may be too early for these answers, but Tesla will likely offer some guidance.

Updates on the new giga factories

Tesla announced plans to invest Tuesday An additional $3.6 billion at its giant plant in Nevada, adding two new facilities dedicated to building battery cells and Tesla Semis. The automaker may discuss these plans further, such as when they hope to break ground on the facilities and begin production.

The automaker said it has a multi-year plan to increase production by 50%, so analysts will want to know more about the new giant plants. There have been reports that Tesla is planning a car $10 billion gigafactory in Mexicoand the company is close to a deal to build factories in Indonesiaalso.

More on Semi and Cybertruck

Tesla finally revealed the car in December First production versions From the long-awaited electric half, the delivery of the first few out Pepsi ordered 100 truckswhich the company ordered back in 2017. A number of notable companies, including Anheuser-Busch, Pepsi, Walmart, and UPS, have also booked Semis, so we may get some updates on production and when those companies can expect delivery.

Cybertruck Tesla has also suffered several delays, but Musk said in July that the company He was on his way to launch The truck is in the middle of this year. We expect more updates on timing, as well as new features. In September, Musk said the Cybertruck would be “waterproof enough Served briefly as a boat. “

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