Tesla’s fourth quarter and full year 2022 earnings are looming. Wall Street expects the electric car maker to post quarterly earnings of $24.03 billion and his adjusted earnings per share to about $1.13, according to Yahoo Finance data. If Tesla hits that sales forecast, it would not only break the company’s record, but it would also be the slowest pace of growth since mid-2020.
As usual, Tesla will release results after the market closes on Wednesday, with management discussing earnings and answering analyst questions in a webcast at 5:30 p.m. ET.
The automaker caps off a tumultuous year with stocks down 65%. This is due to a number of factors, from CEO Elon Musk’s Twitter distractions to concerns about slowing sales in China affected by the pandemic. In tomorrow’s conference call, Tesla plans to address these concerns, as well as recent vehicle price cuts and delayed fourth-quarter delivery schedules.
In fact, so much has happened in the Tesla world over the past few months that Wedbush Securities managing director Dan Ives said the next earnings call and guidance commentary will be “a part of Tesla’s history. and for Musk himself.”
Before jumping into the phone’s predictions, note that Tesla’s stock closed at $143.89 on Tuesday.
Emergence of musk
Musk isn’t always on Tesla’s earnings calls, and in fact is busy defending in court allegations that he misled investors with his infamous 2018 “funds secured” tweet. But the CEO is expected to show up tomorrow, even if that’s the purpose. He reassures investors who are concerned that Tesla hasn’t been paying enough attention since it acquired Twitter.
The executive also took action in November to defend his $56 billion Tesla payment package after filing a lawsuit to reverse a deal that shareholders said was wrongfully given to Musk, the “non-executive CEO.” I was brought to justice.
Estimated delivery date not reached
During Tesla’s third-quarter earnings call, Musk promised Tesla would have a “magnificent end of the year.” The automaker set record vehicle sales and deliveries, but still underperformed its own and Wall Street expectations. Tesla delivered 405,278 vehicles in the fourth quarter, boosted by his December Model Y and his three last-minute discounts. Street said he expected delivery of 425,000 units out of 420,000.
Analysts are likely to question the company’s mistakes, as the fourth quarter marked the third straight quarter that automakers failed to deliver as many deliveries as promised. You may be asked to provide a realistic estimate.
It’s also possible that Q4 shipments and sales numbers will be updated when earnings are announced.
Vehicle price reduction margin
Earlier this month, Tesla lowered the price of its long-range crossover Model Y (20% to $52,990) and Model 3 sedan (14% to $53,990) for US buyers. The vehicle’s new, lower base price qualifies for a $7,500 federal tax credit under the Inflation Reduction Act (IRA) signed into law in August. Under IRA terms, the threshold is $55,000 for electric sedans and $80,000 for SUVs, pickup trucks, and vans.
Tesla has also slashed the prices of its Model S sedan and Model X, which are still too expensive to qualify for the EV tax credit.
The most recent price cut is at least the fourth time the automaker has offered vehicle discounts or credits in the past few months. Tesla announced price cuts of up to 9% for its Model 3 and Model Y in China in October, and cut another nearly 14% earlier this month. The company also implemented his $3,750 discount on the Model Y and Model 3 in the US and Canada in early December, before later raising his price to $7,500 later in the month.
Investors were unfavorable for price cuts, fearing they would signal a drop in demand for the iconic EV. However, the price cuts actually seem to have boosted demand for the vehicle. What investors want to assess is whether the price cuts are cutting Tesla’s margins too far. It may be too early to give these answers, but Tesla will offer some guidance.
New Gigafactory Update
Tesla on Tuesday announced plans to invest another $3.6 billion in its Gigafactory in Nevada, adding two new facilities dedicated to manufacturing battery cells and Tesla Semis. The automakers may discuss these plans further, including if they wish to break ground on facilities and begin production.
Analysts want to hear about other new gigafactories as the automaker says it has multi-year plans to increase production by 50%. There are reports that Tesla is planning a $10 billion gigafactory in Mexico, and the company is nearing a deal to build a factory in Indonesia as well.
Learn more about semi trucks and cyber trucks
Tesla finally unveiled the first production version of its long-delayed electric semi in December, delivering the first few of the 100 trucks Pepsi ordered in 2017. Pepsi, Walmart, and UPS have also pre-ordered Semis, so we may get an update on production and when these companies can expect deliveries.
Tesla’s Cybertruck has also suffered multiple delays, but Musk said in July that the company plans to launch the truck towards the middle of this year. increase. Musk said in September that the Cybertruck is “waterproof enough to function as a boat for a short time.”
