All eyes are on Tesla (NASDAQ:TSLA) stock, as the electric vehicle (EV) leader will report its second-quarter earnings on Wednesday, July 19, after the market close. Investors have already gotten a sneak peek of earnings after the company reported production of 479,700 vehicles and deliveries of 466,140 vehicles during the quarter. Wall Street analysts were expecting 445,924 deliveries, meaning that Tesla beat by about 7.5%.
Over the weekend, Tesla announced that it had produced its first Cybertruck at its Giga Texas facility. Mass production of the EV is slated to begin either during the end of 2023 or the beginning of 2024. However, the price range for the vehicle is still unknown. Back in 2019, the company had teased a starting point between $40,000 and $70,000. This price range is likely to change due to factors such as rising battery material costs.
With that in mind, let’s take a look at three things TSLA stockholders should watch out for during earnings.
TSLA Stock: 3 Things to Watch When Tesla Reports Earnings July 19
First up is revenue, which analyst have forecasted to be $24.76 billion, implying year-over-year (YOY) growth of 46.22% and quarter-over-quarter (QOQ) growth of 6.22%. Furthermore, analysts expect a GAAP earnings per share (EPS) of 68 cents and an adjusted EPS of 82 cents. The GAAP EPS estimate would imply YOY growth of 4.5%, while the adjusted EPS implies growth of 8.38%.
Just as important as current quarter revenue and EPS is guidance. For the third quarter, analysts have forecasted revenue of $25.76 billion, representing a YOY growth of 20.11%. This marks a noticeable deceleration in growth compared to the second quarter. For Q4, revenue is expected to grow by 11.33% to $27.07 billion, which would bring full-year 2023 revenue to $101.10 billion, up by 24.11% YOY compared to 2022’s revenue growth of 51.35%. Meanwhile, adjusted EPS is expected to be 87 cents for Q3 and 96 cents for Q4, bringing full-year 2023 adjusted EPS to $3.53.
Among 35 analysts, TSLA commands an average price target of $213.90. That would imply a decline of about 25% from current prices. On the bright side, two analysts raised their price targets this morning. Wells Fargo analyst Colin Langan raised his target to $256, while Baird’s Ben Kallo raised his target to $300.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
