Tesla (TSLA) is gearing up to report its second quarter (Q2) earnings on Tuesday 23rd July and investors are eagerly awaiting the results. With ongoing supply chain challenges and a recent factory shutdown in China, this quarter’s report promises to be particularly interesting. Here’s a breakdown of key factors to consider ahead of the announcement.
Revenue Expectations:
Analysts’ estimates for Tesla’s Q2 revenue vary significantly. Wall Street forecasts a figure of around $16.5 billion, while Estimize, a crowdsourcing platform for financial estimates, predicts a higher figure of $17.2 billion. This discrepancy reflects the uncertainty surrounding the impact of production issues on Tesla’s deliveries.
Delivery Numbers:
Tesla already announced it delivered about 50,000 fewer vehicles in Q2 compared to the previous quarter. Despite this, analysts remain cautiously optimistic, given the continued strong demand for Tesla’s electric vehicles (EVs).
Expected Earnings Per Share:
Similar to revenue, analyst predictions for Tesla’s Q2 EPS show some variation. The Wall Street consensus points towards an EPS of $1.81, while Estimize predicts a slightly higher figure of $2.06 per share. Tesla has a history of prioritizing growth over short-term profits, so a focus on margin expansion might be overshadowed by continued investments in production capacity.
Conclusion:
Tesla’s Q2 earnings report is likely to be a mixed bag. While revenue might not meet some analysts’ expectations due to production issues, the company’s long-term growth prospects remain strong. Investors should pay close attention to management’s commentary on future production capacity and vehicle launches to gauge Tesla’s ability to navigate the current challenges.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
