Tesla Q4 2023 Earnings Preview
$Tesla(TSLA.US$ The article reported that expectations for the fourth quarter indicate an earnings per share (EPS) of $0.74. This figure is lower both quarter-on-quarter and year-on-year. Revenue is anticipated to be stronger, rising to $25.5 billion, with growth expected across all key segments. Although margins are likely to remain tested relative to figures prior to 2023, they are predicted to improve to around 18%, up from 17.89% in Q3 (source: Refinitiv).
As for analyst recommendations, there are five in the ‘strong buy’ category, 12 ‘buy’, 19 ‘hold’, and four for both ‘sell’ and ‘strong sell’. The average price target among these analysts has only recently surpassed its falling share price (source: Refinitiv).
As for analyst recommendations, there are five in the ‘strong buy’ category, 12 ‘buy’, 19 ‘hold’, and four for both ‘sell’ and ‘strong sell’. The average price target among these analysts has only recently surpassed its falling share price (source: Refinitiv).
You can read more about the Tesla Q4 2023 delivery here:
What to expect?
I think Tesla will meet earning expectations in terms of revenue and net profit due to the strong delivery in Q4 2023. But you can't stop the media from focusing negatively on the decreasing margin and the impact on EV price cuts. Globally speaking all EV brands suffer from decreasing EV demand partly due to inflation and Fed high interest rate. As for EPS, this figure changes with the share price.
Besides the Q4 earnings, I hope Elon Musk will share more info on the following: Energy storage growth, Artificial intelligence and Dojo Supercomputer (Optimus, FSD etc), Tesla Models S and X delivery and production and Tesla's share buy back.
Effect on share price?
Positive because the US economy is improving and the Fed may be cutting the interest rate in Q2. But there may be short term volatility due to the "buy the rumour sell the news" effect such as the news about Elon Musk taking drugs (WSJ), Tesla battery and charging issue in the cold winter, Tesla share price plummet when Cathie Wood sell (or even buy) the stock etc. I choose to believe in the famous quote:
In the short run, the market is a voting machine but in the long run, it is a weighing machine.
Source:
$BYD COMPANY(01211.HK$ $BYD Co.(BYDDF.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Tesla(TSLA.US$ $VOLKSWAGEN A G(VWAGY.US$ $NIO Inc(NIO.US$ $Li Auto(LI.US$ $XPeng(XPEV.US$ $General Motors(GM.US$ $Ford Motor(F.US$ $Rivian Automotive(RIVN.US$ $MERCEDES-BENZ GROUP AG(MBGAF.US$ $TOYOTA MOTOR CORP(TOYOF.US$ $GEELY AUTO(00175.HK$ $Stellantis NV(STLA.US$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
2665Followers
85Following
11KVisitors
Follow
ZnWC OP : I'll give a follow up post after Tesla releases Q4 earnings on 24 January 2024 5:30 pm (EST).
ZnWC OP : Just like previous earnings, some media (or someone) will like to use big market cap giants like Apple and Alphabet to compare earnings with Tesla prior to earnings release. Don't be disheartened by such comparisons.
If you look at past data, it is never a fair comparison to use stock of a different industry to compare earnings because they are selling different products. Currently all EV stocks are facing sell-off; you can check the share prices of BYD, Nio, Xpeng, Li Auto, Rivian etc. If you compare with other EV companies, Tesla's revenue and net income will look very much better and may even meet expectations.
As always read the earnings data with a growth mindset, don't just look at the headline or what the media (or someone) want you to see.