Here’s What to Look for From Tesla’s Q3 Earnings

by | Oct 21, 2019 | Markets

Investors will be looking to see that the company’s vehicle deliveries are picking up.

Tesla stock has seen its share of ups and downs in 2019. The company’s hit a particularly rough patch in early June, and its shares fell to a new 52-week low of $176.99. 

However, the stock has been steadily rising over the past couple of weeks. And on Monday, the stock opened at $258.33 per share.

This Wednesday, Tesla is scheduled to release its highly anticipated third-quarter earnings. And the outcome of this earnings report will have a big influence over whether the stock continues its upward trend. 

Listed below are three things to watch from Tesla’s third-quarter earnings and what investors will be looking to see going forward. 

1. Vehicle deliveries

Tesla’s shares dropped earlier this month after the company reported its third-quarter vehicle deliveries. The company delivered 97,000 vehicles during the third quarter, which is a new record for the company. 

However, Wall Street forecasted the company would deliver 98,000 vehicles. And the number fell short of Tesla’s own guidance of delivering 100,000 vehicles. This week, investors will be looking to hear whether the company believes it can hit its full-year delivery target of between 360,000 and 400,000 vehicles.  

2. Production growth

Tesla recently received permission from the Chinese government to start production on a full-production plant near Shanghai. Tesla hasn’t yet stated when vehicle production will begin at the plant, so investors will be looking to hear any updates on that.

Investors will also be looking to hear updates on the Model Y, which Tesla launched last March. The Model Y is an exciting catalyst for Tesla since it could help the company’s profitability. It’s anticipated that deliveries of the Model Y could start in the fall of 2020.  

3. Signs of profitability

And finally, investors will be looking to see signs that Tesla is taking steps toward becoming profitable. The company’s sales are currently driven by the Model 3, which is its lowest-priced vehicle. 

This has led many people to wonder whether the company can maintain its growth momentum. Investors will be looking at things like free cash flow, vehicle demand, and any sign that the company is on the road to becoming profitable.