Tesla (TSLA) on Wednesday is expected to report its earnings for Q3 of 2024, shortly after its groundbreaking Robotaxi event. Tesla’s Robotaxi introduced the next steps in the autonomous automobile revolution. The launch introduced a new era of car driving capabilities, with the elements of autonomy taking center stage. The event was a bit empty in the eyes of investors though, as stock fell amid the disappointing showing. However, Wednesday’s Q3 earnings report could help TSLA rebound and return to the Magnificent 7 if the report is positive.
Tesla recently lost its place among the tech giants in the Magnificent Seven. It was replaced by semiconductor manufacturer Broadcom.
Wall Street will be eyeing Tesla’s gross margins, as the carmaker has slashed prices to boost demand. In China, Tesla has introduced a series of incentives, such as low-cost financing options to drive demand in the competitive market.
How Will Tesla (TSLA) Do In Q3 Earings Report?
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Analysts polled by FactSet expect the EV maker to report adjusted earnings of $0.60 a share on sales of $25.5B. Last year, Tesla reported adjusted third-quarter earnings of 66 cents a share on sales of $23.4 billion. Revenue is expected to reach $25.4 billion, compared to $23.3 billion in the third quarter of 2023 and $25.5 billion during the prior quarter.
Tesla (TSLA) is the only member of the so-called “Magnificent Seven” grouping of large technology companies that has yet to hit new record highs this year. TSLA stock is overall down around 47% from an all-time high on Nov. 4, 2021. “The stock has been trading on more real numbers and results than anticipation of the next big thing,” said Jay Woods, chief global strategist at Freedom Capital Markets. “This could be the quarter where the recent neutral trend changes and it tries to be magnificent again.”