Tesla Motors Earnings Preview
When? After Market Close, Wednesday October 26
Tesla’s production has started to really ramp up rising 70% in the latest quarter to 24,000 vehicles. The stock, however, has been acting like the company is moving from the initial visibility to a more mature phase and expectations appear to be changing with traders now looking for the company to deliver profits in addition to sales growth. The recent announcement of adding driverless technology (cameras and sensors) to its vehicles and news of an LA to NY driverless trip planned for 2017 appears geared to try and keep the company’s cachet as a cutting edge technology development company going for a while longer and to use that to justify its high valuation.
Since peaking in April, Tesla shares have been under distribution as shown by a trend of lower highs and a big descending triangle above $190.00. If that gives what the shares could really be in trouble but a successful test could set the stage for a rebound.
The street is expecting Tesla to report earnings of $0.03 per share on sales of $2.33B up 88% over a year ago. The company needs to continue delivering on growth and guidance to maintain interest. Any misses or hiccups like a delay to the Model 3 for example could impact the shares.