Tesla on Wednesday joined General Motors and Ford in being cautious about expanding electric vehicle production capacity, citing economic uncertainties and underscoring fears of a slowdown in demand.
Ford Motor said late on Wednesday it is laying off another 150 workers in Michigan because of the ongoing United Auto Workers strike, bringing the total to 2,730 workers furloughed.
Electric battery giant CATL saw its China market share tumble to the lowest in more than a year in September, data showed, underscoring the challenges it faces from smaller rivals and weakener demand in the world's largest electric vehicle market.
Tesla (TSLA) came out with quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $0.72 per share. This compares to earnings of $1.05 per share a year ago. These figures are adjusted for non-recurring items
According to NextEarningsDate.com, the Ford Motor (NYSE: F) F next earnings date is projected to be 10/26 after the close, with earnings estimates of $0.45/share on $40.25 Billion of revenue. Looking back, the recent Ford Motor earnings history looks like this:
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Ford Motor Company (F). This company, which is
Automaker Stellantis aims to increase sales of its light commercial vehicles (LCV) by 25% through 2027 to catch up with global market leader Ford, the unit's head said on Wednesday presenting the group's new range.
Ford Motor Co on Wednesday announced a management rejig, promoting combustion vehicle unit chief Kumar Galhotra to the position of chief operating officer, even as the ongoing autoworkers strike shows little signs of ending.
General Motors (NYSE:GM) is expected to publish its Q3 2023 results on October 24, reporting on a quarter that saw the company’s U.S. deliveries witness strong gains amid a favorable comparison with Q3 2022 when supply chain issues impacted sales. We expect revenue for the
General Motors Co said on Tuesday it will delay production of electric pickup trucks at its plant in Michigan's Orion Township by a year as the No. 1 U.S. automaker grapples with flattening demand for electric vehicle.
Electric vehicle manufacturer Tesla on Tuesday urged the Biden administration to finalize much tougher fuel economy standards through 2032 than U.S. regulators have proposed.
Ford F issued a recall for Explorer SUVs from the model year 2020-22 due to rollaway risk in the absence of a parking brake. Per the National Highway Traffic Safety Administration, 238,364 vehicles are part of the recall.The agenc
The S&P 500 has been a fascinating wealth-building tool for many years. Its annual returns swing wildly, but it has historically averaged about 10% over the long term.
Electric vehicle giant Tesla (
NASDAQ:TSLA
) is
scheduled to report its third-quarter results after the market closes on Wednesday, October 18. Investors remain focused on the company’s margins, given that CEO
Elon Musk continues to slash prices to spur volumes amid growing competition and macro pressures. Analysts expect the company’s
Q3 2023 earnings to decline compared to the prior-year quarter due to margin contraction.
Expectations from Tesla’s Q3 Earnings
Tesla reported better-than-anticipated Q2 2023 results. However, the company’s operating margin declined by a staggering 493 basis points year-over-year to 9.6%. During the Q2 earnings call, Musk dismissed worries about near-term margin variances, as he remains confident about the company’s vehicle autonomy technology driving long-term growth.
As cautioned by the company,
Tesla’s Q3 deliveries declined 6.7% compared to the second quarter due to planned shutdowns to upgrade factories. Still, Q3 2023 deliveries were up 26.5% compared to the prior-year quarter.
Analysts expect the company’s
Q3 2023 revenue to rise 13% year-over-year to $24.3 billion. However, they project adjusted earnings per share (EPS) to decline by about 30% to $0.73 due to lower margins.
Is Tesla a Buy or Sell Right Now?
Last week, Jefferies analyst Philippe Houchois lowered his price target for Tesla stock to $250 from $265, while maintaining a Hold rating. The analyst commented that tracking Tesla’s fundamentals over the past few months “felt a bit like watching paint dry.” He argued that additional margin erosion in Q3 2023 and uncertain growth in 2024 raise questions on whether the EV maker’s earlier profit edge was “structural or a timing difference.”
Houchois contended that while non-auto features such as full self-driving (FSD), storage, and Optimus support TSLA stock, they cannot be yet seen as substitutes to speed and hyperscale in Tesla’s auto business.
On Monday, Piper Sandler analyst Alexander Potter lowered his price target on Tesla to $290 from $300 and reiterated a Buy rating on the stock. Potter updated his model to reflect TSLA’s Q3 deliveries report and revised earnings expectations, with his estimates moving slightly lower.
Potter thinks that Cybertruck and other growth initiatives "are on the horizon," and there is a reasonable possibility that Tesla’s margins will bottom in Q3 2023. That said, the analyst wouldn't be surprised if TSLA stock “trades sideways” in the months ahead.
Coming to 2024, Potter anticipates growth in deliveries to slow before reaccelerating. However, he believes that this optimism is already baked into the Street’s estimates.
With 12 Buys, 14 Holds, and four Sells, Tesla stock earns Wall Street’s Moderate Buy consensus rating. The average price target of $258.38 implies that the stock could be range-bound from current levels.
TSLA shares have rallied 106% year-to-date.
Insights from Options Trading Activity
TipRanks now presents options activity to help investors plan their trades ahead of earnings releases. Options traders are
pricing in a +/- 6.03% move on Tesla’s earnings. TSLA shares have averaged a (1.3)% move in the last eight quarters. In particular, the stock fell 9.7% in reaction to Q2 2023 results.
The anticipated move is determined by computing the at-the-money straddle of the options closest to the expiration after the earnings announcement.
Learn more about TipRanks’ Options tool here.
Conclusion
Wall Street expects Tesla’s margins to continue to decline in the third quarter and drag down earnings. Investors will look forward to Musk’s commentary on Cybertruck, the competitive landscape, and the margin trajectory. They would also pay attention to any comments on the impact of the
ongoing UAW strike that is severely hurting rivals Ford (
NYSE:F
), General Motors (
NYSE:GM
), and Stellantis (
NYSE:STLA
).
Disclosure
A group representing General Motors, Toyota Motor, Volkswagen and nearly all other major automakers on Monday sharply criticized the Biden administration proposal to drastically hike fuel efficiency requirements.