Reuters
- Tesla is set to release its third-quarter earnings report after markets closed on Wednesday.
- The electric vehicle company has already announced record third-quarter production numbers and has beaten its delivery expectations. Analysts on Wall Street are focusing on whether Tesla will meet its 2020 target of 500,000 vehicles.
- Here’s what four analysts have to say about the world’s most valuable auto toe manufacturer.
- Visit Business Insider’s homepage for more stories.
Tesla is set to release its third-quarter earnings report after markets closed on Wednesday. Electric Vehicle said it then manufactured a record 145,036 vehicles in the third quarter and delivered 139,300 vehicles, beating expectations – and Wall Street will be listening for any updates on Tesla’s year-end delivery target of 500,000 vehicles.
The focus will also be on Tesla’s profit margins. The last quarter marked four consecutive profitable quarters for Tesla, but the company was not included in the S&P 500. Nevertheless, the stock has been one of the best performers on the market this year, with more% than year-to-date.
Here’s what Wall Street analysts say ahead of the world’s most valuable automaker’s earnings report.
1. Wadbush Securities
Price target: . 500
Rating: Neutral
Wedbush’s Dan Ives has raised the price target for Tesla from $ 475 to $ 500 ahead of the earnings report.
“Tesla is already reporting 3Q deliveries that exceed street expectations, now all the street attention around revenue on Wednesday will be focused on profitability levels and unit growth in 4Q,” he said.
He added that Tesla’s improved production efficiency and success in its Gigafactory 3 in China will be on display at this event.
Tesla “is on track to effectively achieve a field code of 500K units for the year, like Tesla (and other auto players) six months ago this sand was a pipe dream,” Ives said, adding that the demand path in China by the end of the year By then there will be “front and center”.
He said that finally this week we will meet Musk & Co. So let’s look at the next step, which is the healthy demand and profitability emanating from this dark macro, which is a huge struggle for many of Tesla’s colleagues.
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2. Credit Suisse
Price target: 400
Rating: Neutral
Credit Suisse’s Dan Levy is estimating earnings per share of 73 0.73 against the consensus estimate of 73 0.54.
Levy said he thinks Tesla’s overall gains will be at the center and that Tesla is likely to maintain profitability and maintain its suitability for the S&P 500.
“Q3 Tesla’s effort will be to show that it can maintain profitability despite declining credit revenue,” he said.
Levy said the Tesla Battery Day event in September showed that the company was far ahead of others in the “critical area of batteries.” Even though Tesla has not been able to reduce battery costs to its target level, there is still “a lot to be excited about,” as Tesla is “ahead of the competition” in keeping battery prices low, he said.
Levy expects Tesla to reiterate its 2020 delivery target of 500,000 vehicles. He said he did not think Tesla would reach this point but investors would probably pay attention to it because Tesla’s “long-term growth statement is intact.”
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3. Goldman Sachs
Price target: 50 450
Rating: Neutral
Mark Delaney of Goldman Sachs said regional distribution of third-quarter deliveries would be the main topic of Tesla’s earnings call. Della expects Tesla to reach its 500,000 delivery target by the end of the year.
Delaney also said he expects the earnings call to include a discussion of products and what details are being cut in recent prices for the Model S, and more details about Tesla’s plans to release 25,000 cars in three years.
4. Third Bridge
“There will be intense interest in commenting on Q4 delivery expectations, now that Tesla offers that Musk has softened its language on more than five hundred thousand deliveries for the year,” said Nick Shields, a senior analyst at Third Bridge.
He added: “People will look at the value of Tesla’s tax credit sales against their vehicle sales. Over the last few quarters, we understand, Tesla has relied heavily on sales of tax credits, as they provide huge margins on car sales. There are questions about how long this segment is going to grow. “
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