Investors strap in for Tesla earnings this week
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Tesla (NASDAQ:TSLA) will report Q1 earnings on April 19 with analysts expecting revenue of $23.4B and EPS of $0.85 from the electric vehicle giant. Earlier in the month, Tesla (TSLA) reported that it delivered 422,875 vehicles in Q1. The tally included 412,180 Model 3/Model Y vehicles and 10,695 Model S/Model X vehicles. The Austin-based auto company produced 440,808 vehicles during the quarter. Both the production and delivery numbers were subject to an operating lease accounting shift of 5%
Wedbush Securities analyst Dan Ives said the key focus of the report with investors will be margins. While the aggressive price cuts by Tesla are called a smart "rip the band-aid off moment" for TSLA in defending its EV turf and putting an iron fence around its consumer installed base, there will be an obvious impact on margins that will be closely analyzed. Ives thinks the key questions are (1) When do the price cuts end for Tesla and (2) What will margins look like on the other side of the choppy macro cycle?
Wedbush has an Outperform rating on Tesla (TSLA) and 12-month price target of $225. "Our thesis remains that the increased scale and scope of Tesla's production and battery capabilities in China, Austin, Fremont, Nevada, and Berlin have given the EV stalwart increased cost efficiencies that will help facilitate these price cuts while maintaining/balancing Auto GM of 20% looking ahead," noted Ives.
Options trading on Tesla (TSLA) implies a move of around 8%. Shares pushed up 11% the last time the EV giant reported earnings.
Dig in further: The debate on Tesla stock is as strong as ever on Seeking Alpha just ahead of the earnings report. Read the latest bullish, bearish, and neutral breakdowns on the electric vehicle stock.