Live updates: Tesla to report 4th-quarter earnings

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Jan 24, 2024 #4th-quarter, #earnings, #report, #tesla, #updates

Live updates: Tesla to report 4th-quarter earnings

<p class="copyright">Patrick Pleul/Pool via AP</p> <p><a href="https://www.businessinsider.com/tesla">Tesla</a> reports fourth-quarter earnings on Wednesday.<br /> The Elon Musk-headed company delivered a record 1.8 million cars in 2023.<br /> Investors will be watching for guidance on delivery numbers for 2024.</p> <p><a href="https://markets.businessinsider.com/news/stocks/tesla-earnings-preview-tsla-stock-price-outlook-elon-musk-ai-2024-1" target="_blank" rel="noopener">Tesla</a> will report fourth-quarter earnings on Wednesday after the closing bell.</p> <p>Investors will be focused on the electric automaker's vehicle-delivery forecast for full-year 2024, after record deliveries of 1.8 million cars in 2023. They will also be looking for details about consumer demand following price cuts last year, as well as information about production for the long-awaited <a href="https://www.businessinsider.com/tesla-future-models">Cybertruck</a>.</p> <p><a href="https://markets.businessinsider.com/stocks/tsla-stock" target="_blank" rel="noopener">Tesla's stock</a> was down 16% year-to-date through Tuesday's close, trailing the benchmark <a href="https://markets.businessinsider.com/index/s&p_500" target="_blank" rel="noopener">S&P 500</a>'s 2% gain.</p> <div> <div class="slide"> <div class="slide-title">Goldman Sachs warns of key short-term risks for Tesla.</div> <div class="slide-image"></div> <div class="slide-content"> <p>Tesla's growth potential over the long-term is promising, but the company faces key risks in the short-term, Goldman Sachs said. </p> <p>"Key downsides to our view relate to potentially larger vehicle price reductions than we expect, increased competition in EVs, delays with products/capabilities like FSD/the third generation platform," strategists warned.</p> <p>The bank also cited Tesla's "internal control environment," profit margins, and its "high degree of vertical integration" as key risks.</p> </div> </div> <div class="slide"> <div class="slide-title">Electric-vehicle demand could bottom out later this year, Morgan Stanley says.</div> <div class="slide-image">A Tesla supercharger station at Burbank Town Center, in Burbank on Friday, Sept. 4, 2020 in Burbank, CA. <p class="copyright">Kent Nishimura /Getty Images</p> </div> <div class="slide-content"> <p>Morgan Stanley says an imbalance of EV supply and demand which could weigh on Tesla this year. Though the world's supply of electric vehicles is on the rise, <a href="https://markets.businessinsider.com/news/stocks/tesla-china-sales-tumble-price-cuts-byd-bofa-2023-8?utm_medium=ingest&utm_source=markets">demand looks to be weakening</a>, analysts said, pointing to indicators like <a href="https://www.businessinsider.com/tesla-electric-vehicle-price-war-elon-musk-cuts-profits-ford-2023-4?utm_medium=ingest&utm_source=markets">Tesla's price cuts</a> in China, fewer vehicles qualifying for tax incentives, and <a href="https://markets.businessinsider.com/news/stocks/tesla-hertz-stocks-car-rental-ev-electric-vehicle-elon-musk-2024-1?utm_medium=ingest&utm_source=markets">rental giants</a>, like Hertz, cutting their supply of Teslas. </p> <p>"Looking ahead, are we approaching maximum market negativity on EVs? We believe the trough may happen towards the latter part of 2024," the bank said in a note, citing influences stemming from the EU Parliamentary and US presidential elections.</p> </div> </div> <div class="slide"> <div class="slide-title">Tesla's consensus fourth-quarter adjusted EPS estimate is $0.74.</div> <div class="slide-image"></div> <div class="slide-content"> <p><strong>4th quarter</strong></p> <p>Adjusted EPS estimate: $0.74EPS estimate: $0.62Automotive gross margin estimate: 18.5%Automotive gross margin ex-credits estimate: 17%Revenue estimate: $25.87 billionFree cash flow estimate: $1.45 billionGross margin estimate: 18.1%Capital expenditure estimate: $2.32 billionCash and cash equivalents estimate: $22.31 billion</p> <p><strong>1st quarter</strong></p> <p>Automotive gross margin estimate 18.9%</p> <p><strong>Full-year 2024</strong></p> <p>Production estimate: 2.14 millionDeliveries estimate: 2.19 millionAutomotive gross margin estimate: 19.2%Capital expenditure estimate: $9.01 billion</p> <p><em>Source: Bloomberg</em></p> </div> </div> </div> <div class="read-original">Read the original article on <a href="https://www.businessinsider.com/tesla-stock-earnings-report-q4-call-tsla-price-live-updates-2024-1">Business Insider</a></div>

Patrick Pleul/Pool via AP

Tesla reports fourth-quarter earnings on Wednesday.
The Elon Musk-headed company delivered a record 1.8 million cars in 2023.
Investors will be watching for guidance on delivery numbers for 2024.

Tesla will report fourth-quarter earnings on Wednesday after the closing bell.

Investors will be focused on the electric automaker’s vehicle-delivery forecast for full-year 2024, after record deliveries of 1.8 million cars in 2023. They will also be looking for details about consumer demand following price cuts last year, as well as information about production for the long-awaited Cybertruck.

Tesla’s stock was down 16% year-to-date through Tuesday’s close, trailing the benchmark S&P 500‘s 2% gain.

Goldman Sachs warns of key short-term risks for Tesla.

Tesla’s growth potential over the long-term is promising, but the company faces key risks in the short-term, Goldman Sachs said.

“Key downsides to our view relate to potentially larger vehicle price reductions than we expect, increased competition in EVs, delays with products/capabilities like FSD/the third generation platform,” strategists warned.

The bank also cited Tesla’s “internal control environment,” profit margins, and its “high degree of vertical integration” as key risks.

Electric-vehicle demand could bottom out later this year, Morgan Stanley says.

A Tesla supercharger station at Burbank Town Center, in Burbank on Friday, Sept. 4, 2020 in Burbank, CA.

Kent Nishimura /Getty Images

Morgan Stanley says an imbalance of EV supply and demand which could weigh on Tesla this year. Though the world’s supply of electric vehicles is on the rise, demand looks to be weakening, analysts said, pointing to indicators like Tesla’s price cuts in China, fewer vehicles qualifying for tax incentives, and rental giants, like Hertz, cutting their supply of Teslas.

“Looking ahead, are we approaching maximum market negativity on EVs? We believe the trough may happen towards the latter part of 2024,” the bank said in a note, citing influences stemming from the EU Parliamentary and US presidential elections.

Tesla’s consensus fourth-quarter adjusted EPS estimate is $0.74.

4th quarter

Adjusted EPS estimate: $0.74EPS estimate: $0.62Automotive gross margin estimate: 18.5%Automotive gross margin ex-credits estimate: 17%Revenue estimate: $25.87 billionFree cash flow estimate: $1.45 billionGross margin estimate: 18.1%Capital expenditure estimate: $2.32 billionCash and cash equivalents estimate: $22.31 billion

1st quarter

Automotive gross margin estimate 18.9%

Full-year 2024

Production estimate: 2.14 millionDeliveries estimate: 2.19 millionAutomotive gross margin estimate: 19.2%Capital expenditure estimate: $9.01 billion

Source: Bloomberg

Read the original article on Business Insider

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