May 30, 2023
TSLA Earnings Preview | Q1 2023
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TSLA Earnings Preview | Q1 2023

Tesla, Inc. will have its earnings call on 04/19/2023 after market close. The report will cover the fiscal quarter ending Mar 2023. According to Zacks Investment Research, based on eight analysts’ forecasts, the consensus EPS forecast for this quarter is $0.75, compared with $0.95 EPS for the same quarter last year.

Wall Street is more optimistic, with a $0.860 on an adjusted basis and $23.37 billion in revenue. In general, consensus estimates are about lower revenue than Q4 2022 but higher than a year ago. We expect a net income of $3.03 billion with these numbers. In terms of net income, it must also be less than the previous quarter and a year ago.

One of the questions that market participants will be looking for answers to is the effect of price cuts on company return. This is while some analysts like Ryan Brinkman from JPMorgan have been wary of the price cut’s effect on Tesla’s profitability and other EV-makers. Tesla has been cutting prices several times in the US, Asia, and some European markets in Q1 of this year. The effect of the price cut will depend on the decrease or increase in expenses that should be checked in the report.

So far, we know that during this quarter, Tesla delivered around 423K vehicles and produced 440K globally. Therefore, the surprise and market reaction will be the outlook for demand and production in the next quarter and 2023.

Tesla’s plan on its latest Gigafactory in Mexico, progress on Cybertruck production, which is slated to begin later this year, and updates on the gen three platform will be other important points of this report.

From the fundamental point of view, we are not that optimistic but are not pessimistic either; holding the share can be the best choice, which is also confirmed by technical indicators. If Tesla’s price can increase above $205, then its uptrend can start, as currently, the general sentiment of the market also is associated with fear and risk.

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