Tesla’s fourth-quarter and full-year 2022 earnings are upon us, along with Wall Street expectations for the electric-car maker to post quarterly revenue of $24.03 billion and adjusted earnings. Adjusted per share is about $1.13, according to Yahoo financial data. If Tesla hits that revenue estimate, it would mark a record for the company, but also the slowest growth rate since mid-2020.
As usual, Tesla will share its results Wednesday after the market close, and management will discuss earnings and answer analyst questions in a webcast he will host. held at 5:30 p.m. ET.
The automaker is closing out a tumultuous year in which stock price down 65% due to factors ranging from CEO Elon Musk’s distraction from Twitter to concerns about slowing sales in China being affected by the pandemic. Tesla is expected to address these concerns, as well as recently car discount and Q4 delivery estimates missedon the call tomorrow.
In fact, so much has happened in the past few months in Tesla-land that Dan Ives, chief executive officer of Wedbush Securities, speak The upcoming earnings call and instructive commentary will be “one of the most important moments in Tesla’s history and for Musk himself.”
Before we dive into our expectations for the call, note that Tesla stock closed Tuesday at $143.89, up more than 30% since the start of this month after falling two-thirds. valid as of April 2022.
The appearance of Musk
Musk isn’t always on Tesla’s earnings calls — and in fact is busy right now protect yourself in court for claims that he scam investors with his famous 2018 tweet “funding secured” – but the CEO is expected to appear tomorrow, if only to assuage investor concerns that he hasn’t given enough attention to Tesla since taking over Twitter.
The CEO also went to court in November to defend himself $56 billion Tesla Payment Plan after a shareholder filed a lawsuit demanding the cancellation of a deal he said was unfairly awarded to Musk, a “part-time CEO.”
Estimated delivery missed
During Tesla’s third-quarter earnings call, Musk promised that Tesla would deliver a “big end of the year.” The automaker set records for vehicle sales and deliveries, but still missed its own and Wall Street estimates. Partially motivated by last minute discount to Model Y and 3 cars in December, Tesla delivered 405,278 vehicles in the fourth quarter. Street has expected between 420,000 and 425,000 units delivered.
Analysts will likely question the company’s mistakes, as Q4 marks the third straight quarter that the automaker has unsuccessful arrived many times delivery as it promised. Tesla may be asked to provide more realistic estimates for 2023.
We may also see updated delivery and sales numbers for the fourth quarter when earnings are released.
Profit from car price reduction
In the first day of this month, Tesla discounts of the long-range Model Y crossover ($20% to $52,990) and the Model 3 sedan ($14% to $53,990) to U.S. buyers. The new, lower base price of vehicles that qualify for the $7,500 federal tax credit under the Inflation Reduction Act (IRA), was signed into law in August. Under the terms of the IRA, The threshold for electric vehicles is $55,000 and for SUVs, pickups and vans it’s $80,000.
Tesla also slashed prices on the Model S and Model X sedans, which are still too expensive to qualify for the EV tax credit.
The most recent sale marks at least the fourth time the automaker has slashed prices on vehicles or offered credits in the past few months. Tesla announced a price cut in China up to 9% for Model 3 and Model Y in October, further discounting by nearly 14% earlier this month. The company also released for the first time a $3,750 discount for the Model Y and 3s in the United States and Canada in early December, before raising prices to $7,500 by the end of the month.
Investors have been unhappy with the price drop, which they fear signals a drop in demand for the iconic electric cars. However, the price drop seems to have in fact boosted demand for the vehicles. What investors will be hoping to gauge is whether the price drop will cut Tesla’s profits too much. It may be too early to get those answers, but Tesla may be able to provide some guidance.
Update on new gigafactory
Tesla announced its investment plans on Tuesday Add $3.6 billion to Nevada gigafactory, adding two new facilities dedicated to making batteries and Tesla Semis. The automaker can further discuss these plans, such as when they hope to break ground on facilities and start production.
The automaker said it has a multi-year plan to increase production by 50%, so analysts will want to hear about other giant new plants. There have been reports that Tesla is planning Huge $10 billion factory in Mexicoand the company is close to an agreement to build factory in Indonesiaalso.
More about Semi and Cybertruck
Tesla finally revealed in December First production version Semi’s long-delayed electric, handing over some of the first of Pepsi orders 100 truckswhich the company ordered back in 2017. Several well-known companies, including Anheuser-Busch, Pepsi, Walmart and UPS, have also pre-ordered Semis, so we may get some updates. updates on the manufacturing process and when those companies can expect delivery.
Tesla’s Cybertruck has also been delayed several times, but Musk said in July that the company already on the way to debut truck download mid this year. We are looking forward to other updates in time as well as new features. In September, Musk said the Cybertruck would be “waterproof enough to serve briefly as a boat.”