Will Tesla’s Quarterly Revenue Get Battered?
Expectations are low for Tesla's latest quarterly results. A disappointing quarter means the stock will likely continue to fall. The post Will Tesla’s Quarterly Revenue Get Battered? appeared first on 24/7 Wall St..
The consensus among analysts is that Tesla Inc. (NASDAQ: TSLA) revenue for the most recent quarter, which it will announce today, will be $21.3 billion. That would be down very slightly from the same quarter last year. Earnings are forecast to be $0.42 per share, compared to $0.45 in the same quarter a year ago. If Tesla misses those numbers, it will confirm fears that pushed shares down 44% last year.
24/7 Wall St. Key Points:
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Expectations are low for Tesla Inc.’s (NASDAQ: TSLA) latest quarterly results.
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A disappointing quarter for the EV maker means the stock will likely continue to fall.
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Tesla has already released global first-quarter deliveries of 333,681, compared to estimates of 390,392. It was Tesla’s worst quarter since 2022. Tesla’s sales dropped across many of the countries that contribute considerably to its sales figures. They were down in every EU country in the first quarter and in China over the same period as well. In China, Tesla blamed this on production issues.
Poor deliveries are probably “baked in” to the current stock price. That leaves a few open issues. The first is whether Tesla gives guidance that shows it expects sales to move much higher for the year’s balance. The other question is whether Elon Musk will end his work for the Trump administration and return to his job running the electric vehicle (EV) maker.
Tesla has to show that it can overcome issues that have become critical in the past year. One is whether China companies, led by BYD, will continue to take Tesla’s market share there. Another is the effect China’s tariffs may have on Tesla’s profits. The final one is whether legacy car companies like GM and Ford continue to post increases in market share in the United States. These companies lose huge amounts of money in their EV operations, but they continue to increase their EV fleets nonetheless.
Some investors are willing to wait for new Tesla products, including its robotaxi and a less expensive vehicle for the U.S. market, which may cost $25,000 or less. Management has moved the launch of the inexpensive model to next year. This means a surprise announcement during Tesla’s quarterly call with investors is unlikely.
A bad quarter means the stock will likely continue to fall
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The post Will Tesla’s Quarterly Revenue Get Battered? appeared first on 24/7 Wall St..