With Tesla’s upcoming Q3 results releasing on Wednesday, Tip Ranks shared a few notes on what we can expect from the earnings call.
For one, Wells Fargo analyst Colin Langan has cut the automaker’s price target to $230 from $280 ahead of the earnings call, maintaining a Hold rating. In doing so, Langan cited price increases, currency issues, a higher weighted average cost of capital calculation and high-interest rates. Other analysts however have remained bullish on Tesla such as Goldman Sachs.
Still, Langan also noted that Tesla will be the biggest beneficiary from the Inflation Reduction Act (IRA), set to go into effect on January 1 and reinstate the company as eligible for the federal electric vehicle (EV) tax credit.
As for Daniel Ives from Wedbush, he said on Tuesday, “After a Cinderella story for Tesla since late 2018 its been a painful period of the time for the company/investors. It starts with tomorrow Musk laying out the EV vision for 4Q and into 2023 with some healthy financial direction for the Street. Needs to set hittable targets-key.”
“We remain bullish as Tesla is one of our favorite long term disruptive names to own period. However, for Musk now is the time to execute on reasonable growth and unit targets into 4Q/2023 and it starts tomorrow. No more excuses-Street wants execution on goals,” said Ives.
We remain bullish as Tesla is one of our favorite long term disruptive names to own period. However, for Musk now is the time to execute on reasonable growth and unit targets into 4Q/2023 and it starts tomorrow. No more excuses-Street wants execution on goals.
— Dan Ives (@DivesTech) October 18, 2022
Wall Street expects Tesla to announce an adjusted profit of $1.01 per share in Q3; the year-ago quarter Tesla had an adjust profit (pre-split basis) of $1.86 per share. As for revenue, Wall Street expects $21.96 billion, a nearly 60% increase year-over-year, and also nearly 30% higher than the previous quarter of $16.93 billion.
Earlier this month, Tesla announced its delivery and production figures, achieving a record 343,830 deliveries with 365,923 vehicles produced in the third quarter.
You can check out a Tesla Q3 earnings compilation of analyst estimates, shared by Mathias Føns below:
TESLA Q3 EARNINGS COMPILED ANALYST ESTIMATES
I’ve attached the analyst’s commentary/breakdown of their $TSLA Q3 ‘22 earnings estimates (Twitter or YouTube videos) below this tweet… pic.twitter.com/WzujaaynuI
— Mathias Føns (@FonsDK) October 18, 2022
Elon Musk to Join Tesla’s Q3 2022 Earnings Call https://t.co/2YJQPBtMkv
— TeslaNorth.com (@RealTeslaNorth) October 18, 2022
Weeks earlier, Tesla also requested employee help with a “very high volume” of deliveries in Q3, though CEO Elon Musk says the company is hoping to flatten out the quarter-ending delivery push in future quarters — instead delivering them more steadily throughout the quarter.
Wall Street analysts are generally split on Tesla predictions, with TipRanks ratings including 19 Buys, seven Holds and four Sells, averaging out to a Moderate Buy rating.
At the time of writing, Tesla’s shares are trading at $220.95 (+$1.60), up 0.73 percent from Tuesday’s market open.
You can check out questions asked by shareholders for Tesla’s Q3 2022 earnings call here, and you can watch the webcast set for Wednesday, October 19 at 4:30 p.m. Central Time here.
