Whale Large Capital
  • Politics
  • World News
  • Business
  • Investing
  • Politics
  • World News
  • Business
  • Investing

Whale Large Capital

Investing

Tesla (TSLA) Stock Q3 Earnings Preview: Profit to Drop 9%

by October 23, 2024
October 23, 2024
Tesla (TSLA) Stock Q3 Earnings Preview: Profit to Drop 9%

Tesla (TSLA) Q3 Earnings Preview: Profit Expected to Drop 9%

Tesla (TSLA stock) is expected to announce its third-quarter financial results after the closing bell, thus bringing to an end a series of landmark decisions made by the electric vehicle (EV) major. However, the stock has not been doing well. Even though there were such amazing events as the robotaxi demonstration, the stock has been losing over 16% this month. Investors are now looking at the results from Tesla, which could be a positive factor, but they could also point out the management’s inability to control the present situation.

Tesla Q3 Profit Expected to Fall 9% Despite Revenue Growth

Tesla’s profit is expected to decline in the third quarter, with 60 cents per share expected, which would mean a 9% decrease. Revenue should be $25.47 billion which is 9% more compared to the previous year. Tesla’s global vehicle deliveries for the quarter rose by 6%, which was the third-best total in the company’s history because the strong sales in China were helpful. Nonetheless, the weakening of sales in the US and Europe has led to a decline in the company’s revenue mix with more low-margin vehicles, mainly from China.

Tesla’s gross margins have actually garnered attention lately. Analysts expect Tesla’s Q3 automobile gross margins to reach a minimum of 14.7%, following Q2’s decline to 14.6%.

Robotaxi Event Falls Flat

Tesla’s long-awaited Robotaxi unveiling on October 10 failed to create the expected market impact. However, CEO Elon Musk revealed the Cybercab and Robovan, his lack of clear deadlines and the absence of improvements in complete self-driving (FSD) technology disappointed investors. For several years now, Musk has been making the claim of self-driving cars being 100% autonomous, a dream that is still elusive, and his latest assertion that driverless FSD would be there in California and Texas by next year did almost nothing to inspire confidence in the people.

Moreover, apart from FSD, the release of a purse-friendly Tesla car is what investors are eagerly waiting for. We have not yet been revealed such a car by Tesla despite the previous hints given. Musk set high expectations but did not disclose anything regarding new updates or concrete timelines.

While Tesla’s robot and promises of affordable models were displayed, people’s questions about these programs will be the main reasons they will not affect Tesla’s financials in the near future. This is where the content marketing articles come in. As they are proving to the world how you can do this and that, they end up earning the people’s trust.

Tesla (TSLA) Stock Chart Analysis

TSLA/USD 15-Minute Chart

The approaching Tesla’s third-quarter earnings report shows that the stock is struggling to find a direction. To illustrate, the chart clearly reflects that Tesla has been bouncing between $215 and $224 since mid-October, with a brief rally hitting a peak of $224.26 before returning to $217.96 as of October 23.

Tesla Stock Faces Key Resistance at $224 Ahead of Earnings

We have observed Tesla stock trying to move above the $224.0 resistance level, but this is where every time the price goes to, the selling pressure brings the price down again. This area of resistance is the most important part—if Tesla reports a good profit and strong outlook, it may get the energy to move. At the same time, the $215 support level is also on our radar, and it is one level that has been steady so far. Nevertheless, low earnings may cause this support to break, as the effect may be the downswing of the stock.

Tesla’s Earnings Expectations

Analysts are predicting a 9% decrease in Tesla’s profit to 60 cents per share and a growth of 9% to $25.47 billion in revenue. This information is rather inconsistent, and the stock is under particular stress because buyers are looking forward to the auto gross margins of Tesla. The inefficient strategies driving lesser sales in the US and Europe and converting lower-margin vehicles in China are among the factors that could result in weakened profit margins.

While we are anticipating the results, it is evident that Tesla will have to surpass the projections to restore confidence among the investors. If the company reports exceeding margin expectations and progress on the full self-driving technology, we could see the stock surpassing $224. Nevertheless, if there is any letdown, there is also a high possibility of it breaking the $215 support line and moving down to $200 or even lower. We are going to monitor this issue closely.

Time to re-evaluate your position and get ready for a potential move. Remain knowledgeable and take fast action!

The post Tesla (TSLA) Stock Q3 Earnings Preview: Profit to Drop 9% appeared first on FinanceBrokerage.

0
FacebookTwitterGoogle +Pinterest
previous post
US investigating release of classified docs on Israel’s preparations for possible Iran strike
next post
Top Stock Gainers and Losers: Oklo Up 22%, Neumora Falls 15%

You may also like

Oil and natural gas: Oil is moving away...

August 28, 2024

Nikkei 225 Faces Setback Due to Stronger Yen

August 26, 2024

EURUSD and GBPUSD: New Support and Targets for...

October 4, 2024

AUDUSD and AUDNZD: AUDUSD continues to rise and...

August 12, 2024

SafeMoon and Litecoin: Targets and Prices for the...

October 1, 2024

DRCT Stock: Direct Digital Holdings Price Forecast

August 21, 2024

S&P 500 and Nasdaq: Prices and Targets for...

October 25, 2024

ApeCoin and Akita Inu: ApeCoin remains under pressure

August 8, 2024

Bitcoin and Ethereum Trends: Channel Analysis & Entry...

November 6, 2024

USDCAD and USDCNH: USDCAD continues to slide to...

August 22, 2024

    Subscribe today to receive exclusive access to all our retirement secrets and income strategies, including special financial news and updates from our experts. From time to time, our newsletters feature valuable insights and analysis on the latest financial trends. Don't miss out on these exclusive updates – join our subscription to stay informed!


    By opting in you agree to receive emails from us. Your information is secure and your privacy is protected.



    Latest

    • State Department says 59,000 tons of food assistance are in motion after reports of incinerated aid

      July 18, 2025
    • Pentagon to probe Microsoft’s use of Chinese engineers on sensitive defense systems, Hegseth says

      July 18, 2025
    • GOP senator reveals the ‘dirty’ secret to Trump’s Make America Healthy Again movement

      July 18, 2025
    • Russia says NATO threatens WWIII in latest deterrence plan that could take down Kaliningrad ‘faster than ever’

      July 18, 2025
    • Pro-Israel congressman accuses Tel Aviv of ‘mocking’ Trump with ‘suicidal’ strikes in Syria

      July 18, 2025
    • House Republicans face mounting resistance as third ex-Biden WH aide pleads Fifth Amendment

      July 18, 2025

    Categories

    • Business (721)
    • Investing (661)
    • Politics (4,977)
    • World News (3,213)
    • Terms & Conditions
    • Privacy Policy
    • Contact us
    • About us

    Disclaimer: WhaleLargeCapital.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 WhaleLargeCapital.com | All Rights Reserved