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The Markets
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Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Manufacturing & engineering

Tesla forecasts the key in earnings update

Analysts expect consensus forecast to be beaten, but 2022 guidance will set the tone

At Tesla Inc's (NASDAQ:TSLA) update this evening, investors wil be keen to hear boss Elon Musk lay out his forecasts for electric vehicle (EV) deliveries this year, along with timing updates on the new plants in Austin, Texas and Berlin, Germany.

There will also be questions about its growing cash pile, and production queries such as about the more powerful '4680' battery cells, delays to Cybertruck production and progress of the mooted US$25k car.

A new overall vehicle delivery target for 2022 well above the million mark will also be expected from Musk, who confirmed last year he was still aiming to maintain annual growth rate above 50%.

The last numbers from the carmaker in October saw Tesla post more record sales and profit, with third-quarter earnings per share (EPS) of US$1.86 beating expectations on revenues that were a bit short as automotive margins improved.

Wall Street is forecasting EPS of US$2.24 a share for the fourth quarter.

READ: Tesla forecasts look very beatable says broker

In the third quarter, Tesla Inc (NASDAQ:TSLA)reased deliveries to just over 241k cars, and earlier this month revealed annual vehicle deliveries surged 87% to more than 936,000 for the whole of 2021, up from nearly half a million the previous year.

Tesla's valuation pushed through the US$1trn level in early November, helped by the announcement of a US$4.2bn order from Hertz, although it has since transpired the deal hasn’t yet been signed.

The shares are down over 20% since then, not helped by Musk selling 10% of his stake in the business in order to pay a large tax bill.

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