Tesla Inc (NASDAQ:TSLA) is set to report increased sales but a drop in earnings when it hands down its third quarter earnings report on Wednesday, October 23.
Revenue for the period is expected to grow 9.5% year-over-year to $25.57 billion, while earnings per share (EPS) are seen dropping by more than 12% to $0.58.
Ahead of its earnings report, Tesla earlier this month reported third quarter vehicle deliveries that fell short of Wall Street expectations.
Deliveries were up 6.4% year-over-year at 462,890, below the Street forecast of 463,897, but notably marked the first quarter of growth in 2024 after dipping about 9% and 5% in Q1 and Q2, respectively.
A bright spot for the company has been its performance in China, where a ramp up in promotions including offering zero-interest loans up to five years and upfront discounts on certain models appears to be paying off.
While Tesla does not disclose its China sales, the China Passenger Car Association reported a 19.2% increase in Tesla sales for September over the same month last year.
Promotions in the US, including 1.99% vehicle financing which ended in August, are also expected to boost Tesla’s Q3 performance.
However, the impact of these promotions on Tesla’s Q3 margins will be closely watched, with promotions bringing down the average selling price of Tesla’s vehicles.
The average selling price of Tesla’s vehicles has decreased from about $45,000 in Q1, down from $47,000 in Q1 2023, to $44,500 in Q2.