Tesla’s Earnings Preview: What Analysts Expect as Q4 Approaches
Tesla, Inc. (TSLA), based in Austin, Texas, excels in electric vehicles (EVs), energy storage, and clean energy solutions. The company’s market capitalization stands at an impressive $1.3 trillion. Tesla is recognized for its innovative products, including luxury EV models such as the Model S, Model X, and Model Y, in addition to clean energy alternatives like solar panels, solar roofs, and energy storage systems. Investors will be keen to hear the financial results when Tesla reveals its fiscal fourth-quarter earnings for 2024 on Wednesday, Jan. 22.
Anticipated Earnings Growth and Market Performance
Analysts project that TSLA will report a profit of $0.65 per share on a diluted basis for the upcoming quarter. This figure would represent a 14% increase from $0.57 per share during the same quarter last year. Over the last four quarters, Tesla has either met or exceeded analysts’ estimates in two instances but fell short on two occasions.
Looking at the full year, a decline is expected, with analysts forecasting an earnings per share (EPS) of $1.99, down 23.5% from the $2.60 reported in fiscal 2023. However, a rebound is anticipated in fiscal 2025, with an expected EPS of $2.85—an increase of 43.2% year over year.
Stock Performance Outshining Competitors
In the past year, TSLA stock has shown strong performance, rising 62.5%, significantly outpacing the S&P 500’s gains of 23.3% and the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 25.5% increase.
Factors Behind Tesla’s Growth
Several factors contribute to Tesla’s success. Innovations in autopilot features and battery technology play a significant role in advancing the electric vehicle market. Strong demand, coupled with growth in its energy generation and storage segment, the supercharger network, and advancements in artificial intelligence, have all reinforced Tesla’s strong market position. The company’s solid financial health and emphasis on autonomous vehicles suggest it remains at the forefront of clean energy and technology. Analysts maintain a positive outlook regarding Tesla’s long-term strategies, including its Full Self-Driving capabilities and potential robotaxi services. Additionally, the appointment of Elon Musk as co-leader of the new Department of Government Efficiency during the Trump administration has sparked further optimism about Tesla’s future prospects.
Recent Earnings Report and Analyst Ratings
On Oct. 23, TSLA released its Q3 results, prompting its shares to surge by over 21% in the following trading session. The adjusted EPS of $0.72 surpassed Wall Street’s expectation of $0.60. However, revenue reached $25.2 billion, slightly missing the predicted $25.5 billion.
As for analyst opinions, caution prevails with a consensus “Hold” rating on TSLA stock. Among the 37 analysts, 12 recommend a “Strong Buy”, two suggest a “Moderate Buy,” 14 have a “Hold” stance, and nine advocate for a “Strong Sell.” Although TSLA currently trades above the mean price target of $292.03, the highest target of $515 indicates a potential upside of 27.5%.
On the date of publication, Neha Panjwani did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
