Tesla set to report third-quarter earnings after the bell

Tesla is set to report third-quarter earnings on Wednesday after the close of regular trading.

Here’s what analysts are expecting:

• Earnings per share: 58 cents, according to LSEG consensus estimates.
• Revenue: $25.37 billion, according to LSEG

Earlier this month, Tesla reported third-quarter vehicle deliveries of 462,890. Deliveries are the closest approximation to sales reported by Tesla. The company also said it had produced 469,796 electric vehicles in the period ending Sept. 30.

While deliveries increased 6% from a year earlier, they fell shy of analysts’ expectations and followed two straight quarters of year-over-year declines. Tesla has also been offering an array of discounts and incentives to spur electric vehicle sales, which could continue to stress margins.

The earnings report comes less than two weeks after a much-anticipated robotaxi event that left shareholders wanting more details, and lands about two weeks before the presidential election, which has occupied a hefty part of CEO Elon Musk’s schedule of late. Musk has been vociferously campaigning for Republican nominee and former President Donald Trump.

According to questions submitted by investors via online platform Say Technologies, a significant number of shareholders want to know how Musk’s pro-Trump activism stands to impact Tesla and its stock price.

Musk has spent tens of millions of dollars to get Trump back into the White House, even though the former president doesn’t support the types of federal spending on EVs, charging infrastructure and environmental regulations that have benefitted Tesla for years.

Musk also said at a recent event in Harrisburg, Pennsylvania, that he views many government agencies and regulations in the U.S. as ineffective and unnecessary.

“We should not trust the government, really. We just shouldn’t,” he said. “Even if I’m in the government, don’t trust the government.”

Meanwhile, Tesla is facing increased competitive pressure, especially in China, from companies like BYD and Geely, along with a new generation of automakers, including Li Auto and Nio. In the U.S., legacy automakers Ford and General Motors are starting to sell more electric vehicles, despite walking back prior electrification commitments.

“Tesla’s operating performance indicates that the EV gap with legacy OEMs is stagnating and closing vs. Chinese competitors,” analysts at Jefferies wrote in a note on Tuesday. “Tesla is no longer capacity constrained and is facing 2 years of subdued growth as core models age and scaling variable and fixed costs is challenging.” The analysts recommend holding the stock.

Other investor questions submitted ahead of Wednesday’s call focus on the company’s progress developing its dedicated robotaxis, self-driving software and humanoid robots. Shareholders also want details about the profitability and popularity of the Cybertruck.

The angular steel pickup has been plagued with quality issues, but Tesla still sold more than 16,000 Cybertrucks in the U.S. in the third quarter according to estimates from Kelley Blue Book.

Tesla hasn’t issued specific guidance for 2024, but executives have said they expect a lower delivery growth rate this year versus last.

Tesla shares are down 13% so far this year, while the Nasdaq has gained 23%.

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