Tesla, Inc. shares are under scrutiny ahead of the company’s third-quarter earnings release, which is scheduled to take place after the market close.
Expectations for Q3 Earnings
The company is expected to report earnings per share of $0.54 and revenue of $26.24 billion. However, Tesla has a history of missing analyst estimates, having done so in three consecutive quarters and six of the last eight quarters.
Previous Quarter’s Performance
In the second quarter, Tesla reported earnings per share of $0.40, missing the consensus estimate of $0.42. The company also reported revenue of $22.50 billion, missing the consensus estimate of $22.79 billion due to the impact of tariffs on auto sales.
Elon Musk’s Statement
CEO Elon Musk had previously stated, “We probably could have a few rough quarters. I am not saying that we will, but we could,” during an earnings call last quarter.
Analyst Ratings
GLJ Research analyst Gordon Johnson has reiterated a Sell rating on Tesla, maintaining a price target of $19.05 ahead of the company’s quarterly results. Johnson believes that Elon Musk will present a optimistic picture for investors that is “heavy on optimism and light on truth.”
Other recent analyst changes include:
- An Overweight rating from Cantor Fitzgerald with a price target of $355
- An Equal-Weight rating from Barclays with a price target of $350
- Wedbush analyst Dan Ives has reiterated Tesla with an Overweight rating and set a Street-high price target of $600
Focus Areas for Q3 Earnings
Analysts will be focused on the following areas when Tesla reports its third-quarter results:
- Demand stabilization
- Robotaxis
- China
Current Stock Price
At the time of writing, Tesla stock is trading 2.49% lower at $431.57.
Key Takeaways
- Tesla is scheduled to report its Q3 earnings after the market close
- The company is expected to report earnings per share of $0.54 and revenue of $26.24 billion
- Tesla has a history of missing analyst estimates
- Analysts have varying opinions on the company’s future performance, with price targets ranging from $19.05 to $600.