Tesla Earnings Preview: Low Expectations Are Probably a Good Thing

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Tesla Inc News

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Stocks Analysis by Brian Gilmartin covering: Tesla Inc. Read Brian Gilmartin's latest article on Investing.com

) reports their 3rd quarter, ’24 financial results after the closing bell on Wednesday, October 23rd, ’24, with consensus analyst expectations looking for $0.58 in EPS, on $25.37 billion in revenue, for expected y-o-y growth of -12% for EPS and +9% revenue growth. Operating income is expected at $1.9 billion and is expected to grow +8% y-o-y.

If the consensus operating income number is met, Tesla will see the first y-o-y operating income growth in 6 quarters. It’s clear the momentum is gone from the stock: even RoboDay was a bit of a bust for Tesla. What’s worrisome about that is that the FSD division still accounts for the lions share of Tesla’s valuation, and reading the commentary following RoboDay, analysts and investors seemed rather under-whelmed.

Note the little bump in the full-year 2024 expected revenue estimate , which I assume is due to the cyber-truck disclosure this weekend.The upward-sloping trendline off the ’20 and ’22 lows is still intact, and doesn’t look like it would be violated until $170 – $175 is taken out, on heavy volume. $138 is the 2024 lows, so that’s the definite line in the sand.

Trading at 100x EPS today, and 60x cash-flow, the few positive developments seem to have been overwhelmed with the stagnant robo-car division and the delayed rollout of the lower-end model, but Tesla has much easier compares ahead.

 

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