Tesla TSLA Earnings Report Q3 2021: What to Expect?

Image: Drew Phillips

After years of negativity and disbelief at Tesla (NASDAQ: TSLA), Wall Street began to change its mind. The management of the company has proven that it is able not only to cope with the emerging difficulties but also to develop rapidly in any conditions, while the traditional automakers lag far behind. Wall Street hopes dark clouds are ''in the rearview mirror,'' so what’s expected from Tesla Earnings Report Q3 2021?

Wall Street is optimistic about Tesla's quarterly earnings, which the manufacturer will report on Wednesday. The management of the company will hold a live question and answer webcast that day at 4:30 p.m. Central Time (5:30 p.m. Eastern Time) to discuss Tesla's financial and business results and outlook.

"We expect Tesla's recently reported strong delivery numbers and higher vehicle pricing to more than offset any added costs from supply chain challenges (eg chip shortages, higher freight costs, and increasing commodity costs) in the quarter," Mark Delaney with Goldman Sachs said in a recent note.

Morningstar summarized what to expect from Tesla's Q3 2021 financials and during a live question and answer webcast:

Earnings: The FactSet consensus calls for Tesla to report adjusted per-share earnings of $1.58 for the quarter. That would compare with adjusted earnings of 76 cents a share in the third quarter of 2020.

Estimize, a crowdsourcing platform that gathers estimates from Wall Street analysts as well as buy-side analysts, fund managers, company executives, academics and others, is expecting an adjusted profit of $1.79 a share for Tesla.

Revenue: The analysts polled by FactSet are calling for sales of $13.7 billion for Tesla, which would compare with $8.8 billion in the third quarter of 2020. Estimize is expecting $13.9 billion of revenue.

Stock price: Tesla shares have gained 18% this year, compared with gains of around 19% for the S&P 500 index. The stock has outperformed the index by a large margin in the past three months, however: a 28% advance compared with a 3% advance for the S&P.

What else to expect: Investors will want to hear more about Cybertruck and its production, which has been pushed back to 2022. Apart from this, they will also be waiting for more detailed information on how the current shortage of auto parts continues to affect the manufacturer.

© 2021, Eva Fox | Tesmanian. All rights reserved.

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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.