Tesla Q2 Earnings Preview: Cybertruck Launch and Analyst Expectations
- Shams Ul Zoha
- July 19, 2023
- 10:23 am
WHAT YOU SHOULD KNOW
- Tesla is expected to report second-quarter revenue of $24.53 billion and earnings per share of 81 cents, surpassing its Q2 2020 performance.
- The focus will be on Tesla’s Cybertruck during the earnings call, as it recently unveiled the first model off the production line.
- Analysts have varying perspectives on Tesla’s performance. Some highlight the importance of gross margins excluding credits, Tesla’s artificial intelligence efforts, and growth beyond the automotive sector.
Tesla is scheduled to release its second-quarter financial results, with analysts estimating revenue of $24.53 billion and earnings per share of 81 cents. In comparison, the company reported earnings per share of 76 cents and revenue of $16.93 billion in the same quarter last year. Tesla has a track record of surpassing earnings estimates in the past nine consecutive quarters, while beating revenue estimates in six of the last eight quarters. The company has already reported its second-quarter production and delivery figures, with 466,140 units delivered and 479,700 units produced.
The focus of Tesla’s earnings report and conference call is expected to be on its highly anticipated Cybertruck. Rival companies like Ford and Rivian have recently reduced prices on their electric pickup trucks, which some analysts speculate is in response to the upcoming pricing of Tesla’s Cybertruck. The Cybertruck launch has generated significant anticipation, with over a million vehicle reservations. Tesla CEO Elon Musk has previously downplayed expectations for Cybertruck production in 2023, stating that volume production is more likely to occur next year.
Analysts have shared their perspectives ahead of Tesla’s earnings release. Wells Fargo analyst Colin Langan raised the price target to $265 while maintaining an Equal-Weight rating. Morgan Stanley analyst Adam Jonas reiterated an Equal-Weight rating with a price target of $250. Wedbush analyst Dan Ives maintained an Outperform rating and a price target of $300. Ives emphasized the importance of gross margins excluding credits and highlighted Tesla’s potential beyond being strictly an automotive company. New Street Research analyst Pierre Ferragu expressed caution about potential short-term earnings disappointment due to price cuts impacting margins but expects a recovery in the long run.
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