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. Tesla’s Robotaxi will be a primary example of this new change, mixing autonomous car driving capabilities with ride-hailing services.
However, the unveiling left investors rather disappointed. In response, the market showed a lack of confidence in TSLA stock, seeing it tumble in the opening hours of trading the day after the event. Furthermore UBER stock saw a slight rise to the detriment of Tesla. Specifically, traders saw Tesla’s underwhelming launch as a key opportunity for the rideshare industry.
Following the disappointment of its Robotaxi event, Tesla hopes to convince the market that its financials have bottomed. A positive Q3 earning reveal could help stock turn for the better, but that is a steep hill.
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.
Also Read: Uber CEO Wants Tesla Partnership for Robotaxi? What it Means for TSLA
Analysts expect Tesla to record gross margins of 14.7% for the July to September quarter. That is down compared to 16.3% a year earlier and 14.6% during the second quarter of 2024. Wall Street wants to see margins inch closer to 20% ahead of 2025 to renew confidence, according to Wedbush Securities analyst Dan Ives. “We need to start seeing this key metric head into the high teens for 3Q/4Q to give the Street comfort much of the price cuts are in the rearview mirror showing better margin days are ahead for 2025,” Ives wrote Monday.
Factset Research Systems forecasts that earnings per share will hit 60 cents. This prediction is down from 66 cents a year ago, but up from 52 cents last quarter. 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.
