Tesla Q4 Earnings Expectations • TechCrunch


Tesla’s fourth-quarter and full-year 2022 earnings are upon us, and with it Wall Street expects the electric vehicle maker to post revenue of $24.03 billion and adjusted earnings per share to hover around $1.13. Yahoo Finance Data. If Tesla hits that revenue estimate, it would mark a record for the company, but also the slowest pace of growth since the mid-2020s.

As usual, Tesla will share its results after the market close on Wednesday, and management will discuss earnings and answer analyst questions during a webcast it will hold at 5:30 pm ET.

The automaker is coming off a tumultuous year in which it Share price down 65% From CEO Elon Musk’s confusion with Twitter to fears of slowing sales in pandemic-hit China. Tesla is expected to address these concerns, as well as its recent ones Reduced car prices And Q4 delivery missed estimatesTime to call tomorrow.

In fact, so much has happened in Tesla-land in the last few months that Dan Ives, a managing director at Wedbush Securities, said Commentary on the upcoming earnings call and guidance will be “one of the most important moments in Tesla’s history and for Musk himself.”

Before diving into our expectations for the call, let’s note that Tesla shares closed Tuesday at $143.89, up more than 30% since the start of this month after shedding two-thirds of its value since April 2022.

A look from Musk

Musk doesn’t always attend Tesla’s earnings call — and is, in fact, currently busy protects himself He claimed in court that Deceived investors with his infamous 2018 “funding secured” tweet — but the CEO is expected to appear tomorrow, just to reassure investors that he hasn’t been paying enough attention to Tesla since taking over Twitter.

The executive also went to trial in November to defend him $56 Billion Tesla Pay Package After a shareholder sued to rescind the contract, which he said was unfairly awarded to Musk, a “part-time CEO.”

Estimated Missed Delivery

During Tesla’s third-quarter earnings call, Musk promised that Tesla would deliver an “epic end of the year.” The automaker set record car sales and deliveries, but still missed its own and Wall Street estimates. Fuel by portion Last minute discounts Tesla delivered the Model Y and 3 cars in December 405,278 vehicles It expected 420,000 to 425,000 units to be delivered on the road in the fourth quarter.

Analysts will likely question the company on its misses, as Q4 marked the third quarter in a row that the automaker It was not done It does deliver as much as it promises. Tesla may be called upon to provide more realistic estimates for 2023.

We can also see updated delivery and sales numbers for the fourth quarter during the earnings release.

Margin on car price reduction

Earlier this month, Tesla has cut prices For US buyers its long-range Model Y crossover (20% to $52,990) and Model 3 sedan (14% to $53,990). 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 threshold is $55,000 for electric sedans and $80,000 for SUVs, pickup trucks and vans.

Tesla also lowered the price of its Model S sedan and Model X, which are still too expensive to qualify for EV tax credits.

The most recent price cut marks at least the fourth time the automaker has discounted or offered credit on its vehicles in the past few months. Tesla has announced a price cut In China in October, the Model 3 and Model Y were up 9%, with prices dropping another 14% earlier this month. The company also issued a first $3,750 rebate in the US and Canada in early December for the Model Y and 3s, before kicking it up to $7,500 later in the month.

Investors did not take kindly to the price cut, which they feared was a sign of waning demand for the iconic EV. However, the price cut seems to have boosted demand for the car. What investors will be hoping to gauge is whether the price cut has dented Tesla’s margins too significantly. It may be too early to get those answers, but Tesla will likely provide some guidance.

New Gigafactory update

Tesla announced the investment plan on Tuesday Another $3.6 billion in its Gigafactory in Nevada, added two new facilities dedicated to building battery cells and Tesla Semis. The automaker may further discuss these plans, such as when they expect to begin production based on the facility.

The automaker said it has multi-year plans to increase production by 50%, so analysts will want to hear about other new gigafactories. There have been reports that Tesla is planning a $10 billion gigafactory in MexicoAnd the company is closing in on a deal to build Factory in IndonesiaFor example.

More on Semi and Cybertruck

Tesla finally revealed in December First production version Long delayed electric semis, first few handovers Order of 100 trucks of Pepsiwhich the company ordered back in 2017. Several high-profile companies, including Anheuser-Busch, Pepsi, Walmart and UPS, have also reserved semis, so we may get some updates on production and when those companies can expect deliveries.

Tesla’s Cybertruck has also suffered multiple delays, but Musk said in July that the company was on the way to launch truck towards the middle of this year. We expect more updates on timings as well as new features In September, Musk said the Cybertruck would be “pretty waterproof Served briefly as a boat

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