Why is Tesla stock so volatile?
Stock Market Analysis

What To Expect From Tesla’s Earnings

The EV maker has faced some tough challenges recently, but what do investors need to know ahead of Tesla’s Q1 earnings report on Monday? 

Tesla (NASDAQ: TSLA) is facing severe scrutiny over concerns that the EV manufacturer’s Autopilot driverless features are unsafe after a recent fatal crash involving one of its vehicles. Critics have pointed out that the driverless capabilities lure people into a false sense of security as the system implies that the technology is self-driving when that is not the case. 

Recently, Tesla shares have been more volatile than usual. The stock is up just over 1% compared with the industry benchmark’s S&P 500 index 12% gain since the start of 2021. Therefore, Tesla is hoping to turn things around by reporting strong earnings for the first quarter on Monday. 

When is Tesla’s earnings date?

Tesla reports earnings for the first quarter of 2021 on Monday, 26th of April at 5:00 pm Eastern Time.

How can I listen to Tesla’s earnings call?

To listen to the call and to access the transcript, as well as the shareholder’s letter and the financial statements for the quarter, all you need to do is go to Tesla’s investor relations page.

What to expect from Tesla’s earnings

Here are a few things investors will be looking out for from Tesla’s earnings call: 

Earnings and revenue growth: Wall Street expects Tesla to post adjusted earnings of $0.74 per share, compared with $0.25 per share in the first quarter of 2020. If the company meets this estimate, it would be Tesla’s seventh consecutive quarter of profit. Analysts predict that Tesla will report revenue of $10.5 billion in Q1, up from the $6 billion in the year-ago period. 

Strong delivery numbers: Earlier this month, the company reported jaw-dropping first-quarter delivery numbers. Tesla stated that it sold 184,800 and produced 180,338 cars, which blew past analysts’ expectations of 168,000 vehicles. Analysts believe that demand for Tesla’s Model 3 and Y is hitting its next stage of growth and say that the company could now exceed 850,000 deliveries for 2021. In past earnings calls, Tesla has shied away from giving specific 2021 sales guidance, but shareholders will be keen to hear any indications of future deliveries. 

Discuss chip shortages: The EV manufacturer still faces chip shortages and supply chain challenges, so investors might also like to hear the company’s plans on how it expects to meet its vehicle number targets with these challenges. 

Domination of the Chinese market: In addition, we can expect Tesla to discuss the company’s successful expansion into the Chinese market on the call. In early April, the automaker’s dominance in China was confirmed when the China Passenger Car Association’s data stated that Tesla delivered 69,280 vehicles in the region for Q1. The EV industry has now fully recovered to pre-pandemic levels and Tesla is riding that wave with its lead in the local electric vehicle market over local rivals NIO and Xpeng.

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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here

Nicole Byrne
Nicole Byrne
Nicole is a writer here at MyWallSt. Her favorite stock is Etsy because she loves its original and handmade items. She believes people are going to stop buying mass-produced items and start purchasing ‘one of a kind’ fashions and furnishings. In a world of sameness, Etsy has the advantage.