The EV maker has faced some tough challenges recently, but what do investors need to know ahead of Tesla’s Q2 earnings report on Monday?
Tesla’s (NASDAQ: TSLA) last two earnings reports have disappointed investors, meaning that this quarter’s financials will be scrutinized heavily. With its share price down 27% over the past six months, can one of 2020’s best-performing stock make a rebound when it reports earnings today?
Unsurprisingly, shareholders will be focused on the company’s Bitcoin buys, selling of regulatory credits, and how things are going in China.
When is Tesla’s earnings date?
Tesla reports earnings for the second quarter of 2021 on Monday, 26 July after the closing bell 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 $0.11 per share on revenue of around $11 billion. Analysts are also expecting operating profit of around $835 million, which would represent a 4.4% increase year-over-year (YoY). To combat the last two stagnant quarters, shareholders will be keen to see an earnings beat today to relieve concerns.
Strong delivery numbers: Earlier this month, the company reported jaw-dropping second-quarter delivery numbers. Tesla stated that it sold over 200,000 vehicles for the first time ever. 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.
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 expansion into the Chinese market on the call. Recently, the EV maker has been hit with product recalls due to safety issues, which have resulted in the brand becoming less popular in the country. Analysts are expecting 40% of Tesla’s sales to come from China by next year so it will be important for Elon Musk to show there is growth in the region.
With local rivals NIO and Xpeng stepping up their game in the competitive EV space, shareholders will surely push Tesla to comment on its plans to dominate the important Asian market.
Musk recently tweeted: “we’re making our Supercharger network open to other EVs later this year” but failed to give any details so investors could decide how this will impact the business. Some analysts estimate that by 2030, Tesla’s supercharging revenue could reach $2.9 billion.
Therefore, we can expect questions about how Musk plans to operate these networks.
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