economie

Tesla earnings recap: Stock jumps 12% after hours as company reports big quarterly profit beat

October 23, 20240
Tesla reported its third-quarter earnings on October 23, with EPS coming in above Wall Street’s expectations.

VCG

  • Tesla exceeded Wall Street’s profit estimates in its third-quarter earnings.
  • The stock was up 12% in after-hours trading at the conclusion of the call with analysts.
  • Elon Musk expects Tesla to receive regulatory approval for autonomous rides in California and Texas next year.

, teasing a new version of the sports car at the unveiling of the Tesla Semi.

Musk has said in March that , Wells Fargo said it expects the company to make up for the shortfall in sales by offering “aggressive finance promos globally.”

“We est. the Q3 promotions are equivalent to ~8% lower effective px cut,” analyst Colin Langan said in a note last week, adding that he expects the company to miss Wall Street’s third-quarter earnings estimates.

Langan predicted that Tesla’s automotive gross margin, excluding credits, would be 13.6% in the third quarter, down from 14.6% in the previous quarter.

Wells Fargo rates Tesla at “underweight” with a $120 price target.

Barclays says Wall Street wants to see Tesla get back to fundamentals: selling cars

Tesla

According to data from Bloomberg, here’s what Wall Street is expecting from Tesla’s third-quarter earnings report.

Third Quarter

  • Adjusted EPS estimate: $0.60c
  • EPS estimate: $0.51
  • Revenue estimate: $25.43 billion
  • Gross margin estimate: 16.8%
  • Operating income estimate: $1.96 billion
  • Free cash flow estimate: $1.61 billion
  • Capital expenditure estimate: $2.56 billion

Full Year

  • Production estimate: 1.7 million
  • Deliveries estimate: 1.79 million
  • Capital expenditure estimate: $10.08 billion
Stock edges higher
Elon Musk told shareholders in April that Tesla was accelerating plans to build a cheaper EV.

Slaven Vlasic/Getty Images

Tesla investors want more details about its long-rumored  on timelines.

To turn Tesla into a robotaxi empire, Musk also needs to overcome regulatory challenges facing Tesla’s Full Self-Driving technology. Regulators are already probing the tech after reports of crashes in low-visibility areas.

Some investors have also been less than enthusiastic about the plan.

Ross Gerber, a longtime Tesla investor, said the carmaker is making a big strategy error by focusing on full self-driving cars and robots.

He stressed that Tesla makes nearly all of its money on electric vehicle sales and still faces challenges in its robotics efforts.

“I didn’t think it was that bad per se, I just thought that their basic strategy is flawed, and I think that became pretty glaringly evident last night by completely pivoting to robots and trying to basically shun their EV sales business, which is really 95% of their revenue,” Gerber told Schwab Network shortly after Tesla’s “We, Robot” event. “I think they’re making a crucial mistake.”

However, Musk’s recent success with SpaceX may boost investor confidence in his ability to deliver. The company made history earlier this month when it returned its Super Heavy booster to its launch site in Texas.