Elon Musk has dubbed the Model 3 production ramp up
Elon Musk has dubbed the Model 3 production ramp up &quotproduction hell."
  • Tesla reports third-quarter earnings this afternoon after the closing bell.
  • Investors will be on high alert for updates on the company's demand outlook, after third-quarter deliveries disappointed.
  • The analyst call is scheduled for 5:30 p.m. ET.

Tesla reports third-quarter earnings on Wednesday, Oct. 18, after the closing bell.

Investors are focused on the company's profit margins and demand outlook after a series of price cuts and weaker-than-expected third-quarter deliveries. They'll also be on the lookout for updates on the first deliveries of the long-awaited Cybertruck.

The stock is down 1.2%, to $251.92, as of 9:50 a.m. ET. Shares have climbed more than 100% year-to-date, far outpacing the benchmark S&P 500 and the tech-heavy Nasdaq 100. It currently has 23 buy ratings, 20 holds, and 9 sells, and a consensus price target of $261.86, according to analyst data compiled by Bloomberg.

Bank of America cut Q3 estimates after Tesla's latest delivery numbers.
Elon Musk.
Elon Musk.

Bank of America said in a recent note that Tesla's Q3 vehicle deliveries of about 435,000 vehicles led it to cut its third-quarter profit estimates for the EV maker.

The bank lowered its third-quarter EPS estimate to $0.65 per share from $0.75 per share, compared to GAAP EPS estimates of $0.64 per share.

"We cut our third-quarter estimate to reflect lower deliveries than our prior forecast and for price changes during the quarter," Bank of America said. 

The bank expects investors' focus will squarely be on Cybertruck updates, profit margins, the potential for future price cuts, Tesla's ongoing efforts to reduce costs, and general commentary on demand for electric vehicles during the earnings conference call. 

Tesla's consensus third-quarter adjusted EPS forecast is $0.74.

3rd quarter

  • Adjusted EPS estimate: $0.74 (Bloomberg Consensus)
  • EPS estimate: $0.64
  • Automotive gross margin estimate: 19%
  • Automotive gross margin ex-credits estimate: 17.7%
  • Revenue estimate: $24.06 billion
  • Free cash flow estimate: $2.59 billion
  • Gross margin estimate: 18%
  • Capital expenditure estimate: $2.03 billion
  • Cash and cash equivalents estimate: $21.73 billion

Full-year 2023

  • Production estimate: 1.82 million
  • Deliveries estimate: 1.82 million
  • Automotive gross margin estimate: 19.9%
  • Capital expenditure estimate: $8.01 billion

Source: Bloomberg

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