Investing.com - Tesla is slated to unveil its Q3 earnings on Wednesday, Oct. 18, after the US stock market closes. TSLA shareholders have experienced a prosperous year, with the stock more than doubling in value and outperforming not only the Nasdaq Composite but also its fellow electric vehicle (EV) companies.
Financial analysts are forecasting an 8.8% year-over-year increase in Tesla's (NASDAQ:TSLA) revenues to $26.4 billion for the third quarter. However, earnings per share are projected to fall by nearly a third during the same timeframe.
As Tesla gears up to release its Q3 earnings, here are six crucial aspects to watch for in the report from the Elon Musk-led firm:
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Tesla's Margins and Price Reductions: Earlier this year, Tesla made it clear that it would prioritize delivery growth over profit margins. However, the decision to cut prices has resulted in margin compression, causing Tesla's operating margins to fall to 9.6% in Q2 2023. During the Q3 earnings call, any updates on Tesla's margins and the management's perspective on price cuts and margins will be of interest.
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Tesla's Advertising Strategy: Despite underwhelming deliveries in all three quarters of 2023, Tesla has largely abstained from advertising its vehicles. During the Q3 earnings call, the company might discuss its future advertising plans.
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Delivery Forecasts: Tesla has maintained its 2023 delivery guidance at 1.8 million vehicles. As the year winds down, the guidance for 2024 will become increasingly crucial. Additionally, comments on the production and delivery timelines for the delayed Cybertruck will be worth noting.
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New Tesla Models and Potential Factory in India: Tesla has suggested a low-cost vehicle platform, but details about this ambitious plan are sparse. Furthermore, rumors have circulated about Tesla considering India for its next factory. Insights into these matters may be provided during the earnings call.
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Demand Climate in China: Despite initial support from China, relations have become complex over the past few years. With Tesla's sales in the world’s largest automotive market falling almost 11% YoY in September, the company might discuss the demand situation in China during the earnings call.
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Autonomous Cars Timeline: As we approach the end of 2023, it would be interesting to hear Musk's views on the timeline for full autonomy for Tesla cars, a prediction he has made multiple times over the last few years.
Despite revising down Tesla’s earnings estimates amid sluggish deliveries and brutal price wars, Wall Street analysts will be looking to the upcoming earnings call for reassurances that Tesla's long-term growth trajectory remains intact.