Tesla Earnings Conference Approaches, What To Expect?
$Tesla (TSLA.US)$ Q2 2020 Financial Results and Q&A Webcast is scheduled at 2:30 PM PDT/ 5:30 PM EST, Jul 22, 2020. Follow @moo_Live and stay updated!![]()
Tesla investors are looking for a profit in Q2, which would qualify Tesla for inclusion in the S&P 500 index. As millions of investors keep their eyes on the upcoming report, we list 4 things to watch tomorrow.
Impact of price cuts
To stimulate demand, Tesla announced several price cuts in the U.S. and China. Tesla's quarterly revenue stacked up against the 90,650 vehicle deliveries it reported earlier will shed light on the impact of price cuts on Tesla's top line. And the company's commentary on the quarter, and forward-looking statements, may reveal more on the rationale of the price cuts and how they may affect Tesla's results going forward.
To stimulate demand, Tesla announced several price cuts in the U.S. and China. Tesla's quarterly revenue stacked up against the 90,650 vehicle deliveries it reported earlier will shed light on the impact of price cuts on Tesla's top line. And the company's commentary on the quarter, and forward-looking statements, may reveal more on the rationale of the price cuts and how they may affect Tesla's results going forward.
Free cash flow
Tesla has reached milestones of market cap and its share price since 2020, despite the impacts of COVID-19. Tesla bulls believe the carmaker can effectively scale production across the world, thus justifying the high valuation. But the factory projects, buildouts in Germany and the U.S., potentially in Texas, will also act as a significant drag on free cash flow over the next several quarters, adding risk to shares.
Tesla has reached milestones of market cap and its share price since 2020, despite the impacts of COVID-19. Tesla bulls believe the carmaker can effectively scale production across the world, thus justifying the high valuation. But the factory projects, buildouts in Germany and the U.S., potentially in Texas, will also act as a significant drag on free cash flow over the next several quarters, adding risk to shares.
China demand
The potential for China to become a major sales market for Tesla has been seen by investors. It appears that EV sales in China have rebounded from earlier lows tied to COVID-19. According to China's Passenger Car Association (CPCA), Tesla sold 14,954 Model 3 vehicles in June, up from 11,095 units in May and 3,635 units in April. Are you confident in this large market?![]()
The potential for China to become a major sales market for Tesla has been seen by investors. It appears that EV sales in China have rebounded from earlier lows tied to COVID-19. According to China's Passenger Car Association (CPCA), Tesla sold 14,954 Model 3 vehicles in June, up from 11,095 units in May and 3,635 units in April. Are you confident in this large market?
Full-Year outlook
Tesla told investors that it delivered 90,650 units over the three months ending in June, ahead of Wall Street's consensus forecast of 72,000 - good news during the pandemic. However, before the pandemic, Tesla told investors that it would easily deliver 500,000 vehicles this year and has achieved 179,000 in the first half. In Q1, Tesla said that it would "revisit" its full-year guidance in its second-quarter release and might give comments on the expected demand for the rest of this year. Do you think Elon can keep this guidance?![]()
Tesla told investors that it delivered 90,650 units over the three months ending in June, ahead of Wall Street's consensus forecast of 72,000 - good news during the pandemic. However, before the pandemic, Tesla told investors that it would easily deliver 500,000 vehicles this year and has achieved 179,000 in the first half. In Q1, Tesla said that it would "revisit" its full-year guidance in its second-quarter release and might give comments on the expected demand for the rest of this year. Do you think Elon can keep this guidance?
What is your expectation for tomorrow's earnings conference? Let's share your views with us!![]()
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Dennis Kennedy : I don't think it matters much if there are other more substantial combinations people are ready for this change and on top of that it's Elon Musk, enough said
knowledgeispowerful : the last three quarters in a row Elon as pulled a rabbit out of the hat and two fries and stunned the whole Market all three times this is his one chance to get into the S&P 500 and make a statement and if you think he's going to miss it this time you have no business investing and please just cash out your account and take your money cuz you're going to keep losing money