Tesla Earnings Preview: Price Cuts to Hurt Margins or Drive Market Share Growth?

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Stocks Analysis by Investing.com (Günay Caymaz) covering: Tesla Inc, Tesla Motors Inc, COMMERZBANK AG ZT TESLA MOTORS INC 31Dec99, Banca IMI SpA ZT Tesla 10Jun20. Read Investing.com (Günay Caymaz)'s latest article on Investing.com

) is set to release its Q3 earnings report today. The Austin Texas-based giant's stock has been trading sideways recently, and investors are hoping this report will provide the stock the spark it needs to resume the uptrend.

However, the market's general expectation was for deliveries to exceed 455K units, significantly higher than the 430K range. Yet, the company fell short of this mark. These production and delivery numbers that fell below expectations have also led to weaker earnings forecasts for the 3rd quarter.an EPS of $0.91, surpassing InvestingPro's expectations by 10%. The quarter's revenue reached almost $24.92 billion, aligning closely with expectations.

Looking at the charts, it is seen that Tesla has managed its operating margin well so far. In addition, Musk made a commitment to further reduce costs in his statements on this issue. Therefore, Tesla's operating margin will be an item to be closely monitored in the earnings report to be announced today.Ahead of Q3 earnings, Tesla's overall outlook is shaped as shown in the table below on the InvestingPro platform.

In terms of the price outlook, which is expected to align with the prevailing trend, a drop below $245 could trigger a downward breakout, potentially sending Tesla's stock to the $185 - $200 range.

 

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