Tesla’s upcoming earnings call is expected to focus on several key areas, including delivery growth targets, Model Y production, and updates on the Optimus robot. Analysts from Morgan Stanley have shared their expectations for the company’s fourth-quarter report.
Analyst Expectations
Analysts believe that Tesla will provide updates on the following areas:
- Delivery growth targets: The company may reiterate its previous target of 20-30% growth this year.
- Model Y production: Tesla is expected to provide details on the production ramp-up of its new Model Y.
- Full self-driving technology: The company may share updates on the improvement of its full self-driving driver assistance technology.
- Optimus robot: Tesla may provide milestones and updates on the development of its humanoid robot, Optimus.
Financial Expectations
Morgan Stanley analysts expect:
- Fourth-quarter gross auto margin excluding regulatory credits to be in the 15% range.
- Free cash flow in the quarter to be supported by inventory reduction.
- However, they do not expect vehicle deliveries to rise by as much as 30% this year, instead predicting a growth rate closer to 10% due to pressures on the EV market and competition in China.
Market and Industry Trends
The analysts also expect to see:
- The impact of President Trump’s policies on electric and autonomous vehicles, which may encourage new domestic supply of critical technologies.
- Tesla playing a role in filling the void of next-gen manufacturing and supply chain, driving growth and shareholder value.
Stock Performance
Tesla’s stock closed down 2.3% at $397.15 on Monday, with a year-to-date increase of 4.7%. Morgan Stanley has a price target of $430 on Tesla with an “overweight” rating.
Conclusion
Tesla’s Q4 report is expected to provide valuable insights into the company’s progress and future plans. With the electric vehicle market continuing to evolve, Tesla’s performance and updates will be closely watched by investors and industry analysts alike.