Tesla's Q3 earnings are expected to decline with missed delivery expectations and shrinking margins.

From Nasdaq: 2024-10-17 09:45:00

Tesla is set to report third-quarter 2024 results on Oct. 23, with estimated earnings per share of 58 cents and revenues of $25.57 billion. While the estimate for earnings has increased slightly, it still implies a year-over-year decline. Tesla’s deliveries missed expectations, with margins under pressure from production costs and price cuts.

Factors like high production costs and aggressive price cuts may affect Tesla’s third-quarter results. Deliveries reached 462,890 units, slightly below forecasts. The Energy Generation and Storage segment saw strong growth, with energy storage deployment up 73.3% year over year. However, margins are expected to shrink, impacting the overall performance of the company’s automotive segment.

Zacks’ model doesn’t predict an earnings beat for Tesla this quarter. The combination of negative Earnings ESP (-1.28%) and Zacks Rank 2 doesn’t bode well for an earnings surprise. While Tesla’s performance remains uncertain, stocks like ALSN, CMI, and RIVN are expected to post earnings beats based on our model’s analysis.

Potential earnings beats can be expected from automotive players like ALSN, CMI, and RIVN. Each company has a favorable combination of elements for a strong quarter. ALSN is expected to report earnings of $2 per share, while CMI and RIVN are forecasted to post earnings of $4.89 per share and a loss of 88 cents per share, respectively.

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Read more at Nasdaq: A Comprehensive Look at Tesla’s Q3 Earnings Expectations