Tesla Q3 2023 Earnings Preview

$Tesla (TSLA.US)$ Tesla will be announcing Q3 earnings on next Wednesday (18 October 2023). After the company reported a bigger-than-expected drop in Q3 deliveries , many fear profitability will be below expectation too . The article revealed analysts are reviewing the earnings prediction (quite common after releasing the production and delivery figures).

Based on previous experience, there's no correlation between share price and earnings in short term. Hence do take the analyst's earning expectation with an open mind and trade prudently (dyodd).

Analyst predictions dropping

With Tesla announcing third-quarter earnings and revenue on Oct. 18, analyst predictions are dropping, as delivery data came well below the revised Wall Street consensus.
Analysts put Tesla earnings at 74 cents per share, down 3 cents vs. Sept. 29 and 47% below the forecast at the end of 2022, according to FactSet. Analysts are also cutting full-year earnings estimates for Tesla following the Monday deliveries announcement, dropping them 3 cents vs. Friday's forecast.
The full-year view now puts Tesla earnings at $3.28 a share, down more than 40% compared with expectations at the end of 2022, according to FactSet.

Expected EPS
The analyst forecasts Tesla full-year earnings of $3.26 per share, below Wall Street's current estimate. However, Tesla bulls are betting on a fourth-quarter rebound in deliveries with the revamped Model 3 in China and the expected Cybertruck delivery launch.
Wedbush analyst Dan Ives, a longtime Tesla bull, said the carmaker is "entering the next stage of growth" in a note to clients last week. Ives expects Cybertruck production to kick off around the end of October.
Ives added that Tesla's decision to maintain its 2023 volume outlook of 1.8 million units implies a "strong" fourth quarter is needed to hit that number. The Wedbush analyst projects third-quarter earnings of 78 cents per share for Tesla.

Technical analysis for Tesla stock Buy rating
Last week, Tesla stock popped 4.1% to 260.53. On Wednesday, shares jumped 5.9%, surging above the 50-day line and offering an early entry. Shares fell back Friday morning to the 50-day line, but rebounded for a slight gain. Tesla stock currently resides in a cup-with-handle base, with a 278.98 buy point, according to MarketSmith. A move above Thursday's intraday high of 263.20 could offer a new early entry from breaking a downtrend in the handle. Analysts also maintain that the United Auto Workers strike against Ford (F), General Motors (GM) and Stellantis (STLA) is good news for Tesla, a nonunion shop.
Related articles you must read:
Tesla Just Missed on Its Delivery Expectation. Here's Why the Stock Is Still a Buy
Tesla Stock Is Surging. Thank the EV Bears