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A Tesla car parked near the Tesla Supercharger in Petaluma, California.
Justin Sullivan / Getty Images
Tesla
Investors are experiencing an unusual month for the stock, but news that it will send more again is coming soon. In about a week, the company will report how many electric cars it will deliver in the third quarter.
September has been a tough month for Tesla (Ticker: TSLA). The stock fell 22 percent as of Thursday’s closing price, as the company’s widely expected update on battery technology failed to woo investors. The decline is even worse than Tesla’s 21% decline in March, when the entire market was submerged due to the coronavirus.
It may be impossible for any company to meet expectations for Battery Day. Shares of Tesla rose 74% in August Gust, in part. In anticipation.
An analysis of the event by Wall Street fell into the party line. Bearish analysts wrote that the event was full of aspirations and shed light on the news that will affect the stock in the near term. Bullish analysts wrote that Tesla’s lead in battery technology in G is accelerating, and that day they gained more confidence that the company will deliver millions of vehicles annually in a few years.
That event is now in the rearview mirror and third-quarter delivery – a proxy for sale – is the next thing. Shares rallied more than 13% in early July after Wall Street expectations blew up delivery numbers in the second quarter, dragged down by concerns about how much damage the epidemic would do to production.
Strong numbers expect Tesla to report second-quarter profit – prerequisite for joining the company
S&P 500
The index could have benefited more in return as the funds tracking the S&P 500 would have had to buy the stock.
(Tesla made the required profit and has not yet added.)
Less drama is associated with third quarter numbers compared to previous delivery publications. Both Telsa factories are open in California and China. Further, analysts expect that it will be easier to achieve profitability compared to the second quarter, wrapping up the surprise effect of any S&P 500 index.
Wall Street expects the company to deliver about 141,000 cars during the third quarter. Estimates range from 123,000 to 161,000.
Most recently, Wall Street forecast aggregator Factset listed an estimate of 190,000 vehicles, as one of the figures used to create its consensus number. It was doing a little lower on average, but lost an estimate this week. Removing the figure of 190,000 has reduced the average estimate by about 3,000 vehicles.
The current quarter is expected to be a record for Tesla by a wide margin. The company delivered 112,000 vehicles in the fourth quarter of 2019 before hitting the epidemic – the current record -.
Analysts expect the company to deliver about 483,000 cars in 2020, up from 368,000 in 2019. It is an impressive feat given the global economic downturn.
Ford Motor
(F), for example, will sell about 4.2 million vehicles in 2020, down from 5.4 million in 2019.
Relevant performance is reflected in the share price. Ford shares are down 28% year-to-date, worse than the comparable return of the S&P 500
Dow Jones Industrial Average.
Tesla stock on the other hand is about 380% to date.
Tesla stock rose 5% on Friday, down about 8% over the week.
Write to Al Route at [email protected]
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