Speculators no longer seem to care for "in-line" anything.*
The stock is at $217.66 down $3.04 (-1.38%) on a generally down day.
From MT Newswires via MSN, October 21:
Tesla (TSLA) is expected to report "generally in-line" third-quarter headline results later this week, with investors likely to focus on Chief Executive Elon Musk's remarks on the electric vehicle demand outlook, Wedbush Securities said in a Monday client note.
Earlier in the month, the EV manufacturer unveiled prototypes of a two-seat vehicle called "Cybercab" and a "Robovan" 20-person vehicle at its "We, Robot" event. However, the event lacked key details and updates, leaving analysts and investors disappointed.
"While many investors left the Robotaxi Day clearly wanting more details on the broader autonomous and (artificial intelligence) strategy at Tesla, we would expect Musk to address some of the timing/specifics around its (Full Self-Driving) and Cybercab strategy on the conference call this week," Wedbush analysts led by Daniel Ives wrote in the note. Ives anticipates Tesla to possibly give an update on the timing for the vehicle, which is expected to launch in the middle of next year.Tesla is scheduled to release its third-quarter results after markets close Wednesday.
Wedbush projects potential "slight upside" to the automaker's margins, which are expected to be a key investor focus during the call. The Street is looking to see a "levelling off" for auto gross margins, excluding credits.
"We need to start seeing this key metric head into the high teens for (the third and fourth quarters) to give the Street comfort much of the price cuts are in the rearview mirror showing better margin days are ahead for 2025," according to Ives.
Earlier in October, Tesla posted sequential and annual gains in its third-quarter vehicle deliveries, though the print missed Wall Street's whisper numbers. Wedbush said Monday it the company should be able to hit the target of 1.8 million deliveries for full-year 2024....
....So much for that prognostication. As seen in October 1's "Chartology — Breakout or Breakdown: Tesla (deliveries reported tomorrow, robotaxi etc.) TSLA":
....So, for patient reader, having read this far, here's my two cents worth:
Deliveries will be in-line this month and the next few months and the robotaxi unveil will be written up as a bust. The people who write the headlines hate Elon Musk and nothing he does will ever, ever change that. The financial question is: will the self-driving taxis be contributing to sales and earnings in two years?
Based on the fact that Waymo is now booking 100,000 rides per week I think the answer is yes but your mileage may vary. To repeat the comment on the April earnings call transcript:
Personally I think Musk is going to pull it off, but that's just me—perhaps informed by posting on the company and its stock since before the June 2010 share flotation (which, adjusted for the 5:1 and 3:1 stock splits gives a $1.133 IPO price)—however, there are plenty of other opinions to choose from if one doesn't care for that one....
In late pre-market action the stock is trading up $1.17 (+0.45%) at $262.80 after closing Monday at $261.63 also up $1.17 (+0.45%).
As ZeroHedge put it:
...Tesla reported 462,890 deliveries and 469,796 vehicles produced in Q3 2024. Analysts, based on FactSet StreetAccount estimates, had expected 463,310 deliveries for the quarter ending September 30.
Missed it by 420 vehicles.
October has been a tough month to be long TSLA:
