Tesla Inc. is scheduled to release its fourth-quarter earnings on Wednesday after the bell, and investors are especially eager to hear the electric vehicle (EV) maker’s guidance for 2024. The earnings call with analysts will take place at 5:30 p.m. Eastern and will be followed by a webcasted Q&A session.
Earnings Expectations
Analysts surveyed by FactSet anticipate Tesla to report adjusted earnings of 73 cents per share for the quarter. This would be a decline compared to the adjusted earnings of $1.19 per share in the fourth quarter of 2022.
Revenue Forecast
The analysts forecast revenue of $25.62 billion in the quarter, which is an increase from $24.32 billion in the same period last year. It is worth noting that Tesla’s sales surpassed $20 billion in the third quarter of 2022.
Stock Performance
Tesla’s stock has faced a challenging start to the year, experiencing a decline of approximately 16% in January. However, it continues to outperform, with a year-over-year increase of about 45%. This compares to a 21% gain for the S&P 500 index.
Key Areas of Interest
Apart from guidance, market observers are keenly watching for any updates on margins, which have been impacted by recent price cuts. Additionally, investors are concerned about the demand for Tesla vehicles and whether there may be a slowdown in EV sales.
Retail investors are particularly interested in news about the rumored “Model 2,” believed to be Tesla’s next-generation mass-market EV. Retail shareholders have submitted questions to a Tesla platform, and inquiries regarding the “Model 2” top the list.
Analyst’s Perspective
Wedbush analyst Dan Ives commented on Tesla’s performance in 2023, noting that the company made strategic price cuts. As Tesla and Chief Executive Elon Musk face a crucial decision, Ives suggests that they consider either continuing with price cuts amidst increased EV competition or maintaining stable prices and profit margins. This decision, according to Ives, will shape Tesla’s future in the years to come.
