When will Tesla announce its first quarter 2023 earnings?
Tesla will report its first quarter results after the U.S. market closes on Wednesday, April 19. A Q&A session with investors will follow on the same day at 1630 CET (1730 ET).
Tesla Q1 Earnings Consensus
Tesla expects first-quarter revenue to grow 24% year-over-year to $23.3 billion. Refinitiv’s consensus figures show that adjusted EPS is expected to fall more than 20% year-on-year to $0.86, with reported EPS ultimately expected to fall 29% to $0.68.
Tesla Q1 Earnings Preview
We already know that Tesla produced 440,808 vehicles in the first three months of 2023, of which 422,875 were delivered to customers.
Tesla has cut prices several times in multiple regions since early 2023 in hopes of supporting demand. However, while production and shipments hit new records during the period, they were up slightly from the previous quarter, suggesting price cuts haven’t stimulated demand as much as hoped. revenue growth will slow.
While strong, with first-quarter deliveries up 36% year-over-year, this still falls short of Tesla’s ambitions of 50% growth, and achieving that goal over the years will require sales Suggesting that more support may be needed to increase volume. not enough.
Quarterly output also fell short of its target after increasing 44%. Overall, Tesla aims to produce 1.8 million cars in 2023, which is about 31% more than what he saw in 2022. CEO Elon Musk has highlighted that this could reach his 2 million units, which would be a 46% increase for him over the previous year.
But the key focus is profitability and how price cuts affect profit margins.
“Undoubtedly, the price cuts reflect Tesla’s need to stimulate demand, a clear trade-off between volume and profit margins,” Bernstein analyst Toni Sacconaghi said. said last week. Some analysts warn that further price cuts are likely this year and that profitability will not necessarily bottom out in the first quarter.
Tesla could impress if it can offset price cuts with cost cuts to protect its margins, but weak numbers could jeopardize consensus forecasts for 2023 while undermining production capacity and new models. concerns may be revived. With that in mind, Wall Street expects automotive gross margin to be 23.0% in the first quarter and overall gross margin to be 21.2%, according to Bloomberg consensus figures.
The start-ups of new plants in the US and Germany and lower lithium prices this year are expected to improve economies of scale, providing some volatility and absorbing some of the impact of lower prices.
If the consensus numbers are accurate, we’ll see the tightest margins since the second half of 2019! Importantly, financial chief Zachary Kirkhorn pledged earlier this year to keep margins above 20%. , which is an important level to keep in mind.
One reason Tesla can afford to sacrifice some of its margins is because it’s more profitable than its rivals. That means it is well-positioned to absorb the impact of lower prices compared to its competitors, which include both smaller start-ups and traditional automakers.
For example, the CEO of French brand Renault said the company is reviewing prices for electric cars around the world after Tesla announced last week that it would cut prices across Europe. “It is clear [Tesla cutting prices] Starting with the cost side of things, it’s a challenge. That’s the caveat we’re seeing,” said CEO Fabrice Cambolive.
This shows that Tesla is in control of its price cuts, determining the market’s attitude rather than reacting to rival moves.
Still, we do know that competition is heating up and that traditional automakers are ramping up production of electric vehicles and starting to make an impact by launching more EV startups. At its peak, Tesla made 86% of all electric vehicles sold in the U.S. in the third quarter of 2018, but he fell to 57% in the fourth quarter, according to Bloomberg data.
One concern is Tesla’s inability to introduce new models, limiting its options. This may increase the pressure to update the portfolio in the future. The introduction of the Cybertruck in late 2023 (after several significant delays) could provide a new catalyst in 2024. Elsewhere, the Tesla Semi is currently in pilot production, while the Roadster and Robotaxi are both in development.
Where’s next for TSLA stock?
Tesla’s stock has struggled to recover from its 50-day moving average over the past two weeks, but a favorable string of earnings could see the stock rise above this threshold and close to its 200-day moving average. could be nearly identical to $215. The peak of 2023 is in sight again. A breakout here could take the price above the November high of $234.
Any pressure could push the stock towards the $171.50 100-day moving average, but given the short low in November and bottom in March, $167 is a Potentially a more solid support level. A fall would put the lows we saw in early 2023 back on the radar.
The current average target price of the 42 brokers covering Tesla is $197.44, suggesting only about 6% upside from current levels. This has risen slightly in recent months, but is broadly in line with the price target slapped on the stock in early 2023.
In particular, cup and handle patterns emerged. This was made more evident on the weekly charts, following the general ‘U’ shape seen from November to February. The volume has also eased since the handles started to form. This is generally seen as a bullish formation and suggests that the top of the handle currently near $200 is a key level to watch.
Take advantage of long-term trading
Tesla will announce earnings after the market closes, so most traders will have to wait until trading resumes. By then, however, the news had already been digested and the stock price’s immediate reaction occurred in after-hours trading. I have.
With this in mind, you can take advantage of our service that allows you to trade Tesla and other technology stocks using time extension services.
Trading after hours presents opportunities for traders, but it also creates risks, especially since liquidity levels are low.find out more about long trading.
How to trade Tesla stock
In just 4 steps you can trade Tesla stock on Forex.com.
- Open a Forex.com accountagain login If you are already a customer.
- Search for “Tesla” on our award-winning platform
- Choose your position and size, stop and limit levels
- make a deal
Alternatively, you can sign up and practice risk-free trading demo account.
