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Among several points expected to be raised during the upcoming earnings call for Tesla, investors may see a more than 88% increase from the same period last year.
Tesla Inc (NASDAQ: TSLA) may rise impressively for the second quarter-ended June when the company publishes its official earnings report. Over the past three years, Tesla stock usually performs better than expected in the week before earnings. This is because investors are usually upbeat about the upcoming report.
This trend has occurred in eight of the last 12 quarters reported. The average gain over this period is 1.6%, with Tesla expected to post quarterly earnings of $0.90 per share. If this happens, the rise will represent a year-over-year uptick of +104.6% for Q2 2021. On average, Tesla usually outperforms the S&P 500 index by 1.7 points in the final week before publicizing its earnings. Overall, in its upcoming report, Tesla is expected to post revenues of up to $11.39 billion, an 88.7% increase from the same quarter exactly a year ago.
Another fact that reinforces this sense of optimism is that Tesla’s product delivery has increased for six consecutive quarters, leading to bigger earnings. Estimates for its Q2 profits have risen from 95 cents a share to about 96 cents since Tesla delivered more than 200,000 in a single quarter for the first time. Although this is not a large bump, analysts do not adjust their predicted earnings between the release of delivery numbers and financial reports because it is a relatively brief time.
Before this week, the stock was stagnant for a while at about $672, closing last week at $649 – a 3.5% downturn. By comparison, the S&P 500 index rose 3.3% over the same period. At the time of writing, in the pre-market, TSLA stock is at $653.03 (+1.05%).
Tesla Earnings and Investors
It should be noted that the general feeling is bullish as per the projected estimates for Tesla’s Q2 report. However, the actual numbers on the report will influence potential investor sentiments on earnings-per-share (EPS) for future quarters. There are key factors to look out for, including how management discusses business and environmental conditions. Other factors that may affect EPS are the new autonomous driving features and increased production from the new plants in Berlin and Texas. The full effect of these may not kick in until the end of the year.
There are many other projects that investors will want to hear about in the upcoming Q2 conference call. For instance, investors would expect information on Tesla’s competition in China and Europe, as well as the company’s market share in both jurisdictions. One such rival is the Chinese XPeng which just announced its P5 sedan. The XPeng is cheaper than the Tesla Model 3 built in China, by more than $10,000. Overall the Tesla lineup of products is expanding. Although there are competitors, the company currently is the most valuable automobile company on the planet.