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Tesla reports earnings on Wednesday: 7 important things to watch

After a rather dramatic couple of months, Elon Musk seems eager to let the world know how his company performed…

After a rather dramatic couple of months, Elon Musk seems eager to let the world know how his company performed the quarter.

On Monday evening, Tesla (TSLA) whose income reports usually do not arrive until at least one month after the quarter has surprisingly announced that its third quarterly report will be published Wednesday afternoon. A redemption notice begins at 18:30 Eastern.

TheStreet will blog about Tesla’s results after the end of October 24th. Please check our website for more information.

Using a bullish effect from Citron Research, Tesla shares increased 12.7% on Tuesday after the announcement. The stock has been on a mountain trip since Elon Musk infamously declared in August that he was in a call to take Tesla privately at a price of $ 420 per share and (contrary to the fact) had secured the financing necessary for the deal. As part of a solution to a SEC civil-law issue related to his comments, Musk agreed to step down as Tesla’s chairman for three years.

On average, analysts according to FactSet expect Tesla, which promised to be GAAP profitable and cash flow positive during the third quarter, to add revenue of $ 6.05 billion (an increase of 1

03% annually due to a larger increase in deliveries of Model 3) and GAAP EPS with negative $ 0.95. The non-GAAP EPS consensus is a more favorable negative value of $ 0.03. Tesla’s comment on future production, sales and results, however, usually has a greater impact on the share than its reported revenues and EPS figures.

TheStreet will live blogging Teslas Q3 report and its revenue. Here are some things for investors to keep track of when the festivities begin.

first Profit and Cash Expectations

As a consensus in Q3, many analysts assume that Tesla, which now sees major economies of scale for model 3 production, became profitable last quarter. On average, however, they expect that Tesla will report a modest positive voluntary cash flow (FCF) for both Q3 and Q4, and for non-GAAP EPS improved to $ 0.78 in Q4 (GAAP consensus is negative $ 0.08).

Tesla, which has made redundancies and prepared its capital expenditures as part of their efforts to become profitable and avoid a capital injection in the second half, should provide fresh comments on the earnings outlook in the share book. The company has warned that tariffs and currency fluctuations (a stronger dollar) affect its bottom line.

2nd Model 3 Production Guide

As usual, Teslas announced quarterly deliveries and production shortly after the end of the quarter. For the third quarter, the company reached 53,239 model 3 units, an increase from 28,578 in the second quarter. However, when Tesla reported that it produced over 5,300 model units during the third week’s last week, the company fell with a goal to increase production to 6000 units per week by August.

Any changes in Tesla’s production goals will be followed closely. In its second shareholder, the company insisted that it would grow model production to a level of 10,000 units per week “as soon as we can”.

3rd Model 3 Marginal Trends

Tesla ruled in August for its 3 gross margin (GM), which was “somewhat positive” in the second quarter, improving to 15% and 20% in the fourth quarter, as the company benefits from a larger scale . However, this is a more cautious view than Tesla’s original forecast for a 25% Model 3 GM, once again “stabilized” at 5,000 units per week, even though Tesla has not yet begun to produce its standard battery model 3, which was promised to have a starting price at $ 35,000.

4th Model S and X Sales Expectations

Tesla reported that it delivered 14,470 units of its S model S in Q3 and 13,190 units of its Model X luxury transition. The number was slightly better than analyst expectations.

And although Tesla warned that its Chinese model S and X sales were damaged by higher import duties, the company repeated guidance for 100,000 combined 2018 model S and X deliveries. 2019 guidance has not yet been issued.

5th Comments to the President Search

Musk has not yet announced who Teslas’s next chairman will be. However, it was reported a few weeks ago that director and James Murdoch’s 21st Century Fox are the frontrunners to get the job. Musk can have a question or two on the conversation about his company presidency search.

6th Comments on the standard battery model 3

Muskus indicated in June that the production of the standard battery version of Model 3 would start in the first quarter of 2019. And after touring the Teslas Reno Gigafactory, the investor was expected to expect the car to start shipping “under the next eight months. “

The company could ask one or two about what it looks like production and deliveries ahead for the cheapest version of model 3 in 2019. Last week, Tesla announced that it would start selling a Mid-range version of Model 3 starting at $ 45,000, albeit with the car’s Premium Upgrades Package bound.

7th Energy performance performance

Q2 was a rough quarter for Tesla’s energy generation and storage segments, which saw strong growth in the sale of battery systems, but a weaker demand for the sun’s supply. The segment had a GM of only 11.8%, a decrease of 14.7% a year ago. And while revenues increased by 31% to $ 374 million, it did not fall with a consensus of $ 418 million.

For the third quarter, the consensus is that Tesla’s energy segment will trade $ 377 million (up 19%) and a gross profit of just $ 20 million.

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